Interest-Rate Risk
Plain-English definition
The possibility that changing interest rates adversely affect asset values, funding costs, or earnings.
Why it matters
Assets and liabilities may reprice at different times, so rate changes do not affect every REIT or BDC in the same way.
Example
If funding costs rise before asset income adjusts, a hypothetical lender's earnings spread can narrow.
How income investors use it
Read rate sensitivities and financing terms in company reports. In Fly High analysis, examine the effect on earning power rather than assuming one universal direction of impact.
This material is general education, not individualized investment, tax, or legal advice.