Rose, Chapter 7: Risk management for Changing Interest Rates Study Notes contain 29 pages covering the following learning objectives:
Discuss how asset-liability management strategies can help a bank hedge against interest rate risk.
Describe interest-sensitive gap management and apply this strategy to maximize a bank’s net interest margin.
Describe duration gap management and apply this strategy to protect a bank’s net worth.
Discuss the limitations of interest-sensitive gap management and duration gap management.
After reviewing the notes, you will be able to apply what you learned with practice questions.Shop Courses