The risk that increased market interest rates will cause a decline in the value of an investment bank's holdings of long-term securities is known as

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The risk of a decline in the value of long-term securities due to increased market interest rates is known as interest-rate risk. This risk is inherent in any investment that involves holding long-term fixed-income securities, including those held by investment banks. Credit risk pertains to the risk of default by a borrower or counterparty, currency risk involves the risk of adverse exchange rate movements, and security risk refers to the risk of loss due to theft or other security breaches.

The Risk That Increased Market Interest Rates Will Cause a Decline