Traditionally, concerns from financial support adequacy for financial institutions was in fact examined with mention of credit and you will interest risks

Traditionally, concerns from financial support adequacy for financial institutions was in fact examined with mention of credit and you will interest risks Typically, rate of interest risk is readily managed from the adjusting maturities off assets and you will liabilities. However, hedging prepayment chance is more advanced. To cope with so it exposure with little to no financial support needs a beneficial conceptually higher level hedging design. Essentially, the present day system hinges on the […]