X hits on this document

Powerpoint document

MANAGING INTEREST RATE RISK: DURATION GAP AND MARKET VALUE OF EQUITY - page 2 / 39

106 views

0 shares

0 downloads

0 comments

2 / 39

Duration GAP …focus on managing NII or the market value of equity, recognizing the timing of cash flows.

Interest rate risk is measured by comparing the weighted average duration of assets with the weighted average duration of liabilities.

If Asset duration > Liability duration

interest ratesMarket value of equity will fall.

Document info
Document views106
Page views106
Page last viewedSat Dec 10 19:07:44 UTC 2016
Pages39
Paragraphs367
Words2250

Comments