---
title: Rate Risk and Rate Insurance
url: https://www.ml-quant.com/papers/repec/nbr-nberwo-35636/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:nbr:nberwo:35636
source_url: https://econpapers.repec.org/RePEc:nbr:nberwo:35636
featured: 2026-09-25
citations: unknown
topic: Asset Pricing & Factors
---


# Rate Risk and Rate Insurance

Stock returns are dampened by rate insurance: falling rates cushion payoff risk in bad times while rising rates in good times hedge duration exposure.

- Source: https://econpapers.repec.org/RePEc:nbr:nberwo:35636
- Identifier: RePEc:nbr:nberwo:35636
- Released: 2026-09-13
- First featured: Quant Letter No. 132 (2026-09-25): https://www.ml-quant.com/issues/2026-09-25/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Asset Pricing & Factors
- Authors: Olivier Wang

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