I agree completely. The duration risk is the one they couldn’t or wouldn’t manage and the disparity rose as the fed increased the rates. Hedging would have helped a bit but they also couldn’t have seen how MANY of their customers would need cash. Also, their portfolio wasn’t particularly diversified.
I agree completely. The duration risk is the one they couldn’t or wouldn’t manage and the disparity rose as the fed increased the rates. Hedging would have helped a bit but they also couldn’t have seen how MANY of their customers would need cash. Also, their portfolio wasn’t particularly diversified.
I agree completely. The duration risk is the one they couldn’t or wouldn’t manage and the disparity rose as the fed increased the rates. Hedging would have helped a bit but they also couldn’t have seen how MANY of their customers would need cash. Also, their portfolio wasn’t particularly diversified.