About Risk Management11686229


The need to define, measure and model market risk factors arises at three levels:

  • determining longer-term strategic debt management policy
  • evaluating the risk associated with tactical departures from this strategic policy
  • correctly pricing debt and derivatives transactions

The nature of the treatment of market risk depends substantially upon the particular goals and modus operandi of the sovereign

The risk that debt service costs increase directly or the opportunity to reduce debt service costs is forgone as a result of movements in financial market prices.

There are a number of market risk factors of relevance to the management of the Australian government's debt portfolio:

  • Domestic and foreign interest rate risks
  • Exchange rate risk


*Please note this list is not intended to be exhaustive, if you have questions about risk and your Investments, talk to your financial adviser. Investors should carefully consider the investment objectives, risks, charges and expenses. This and other important information is contained in the Prospectus, which can be obtained from your financial adviser and should be read carefully before investing.