Hedging interest rate movements

Reference no: EM131231356

Hedging Interest Rate Movements:

If market interest rates are expected to decline over time, will a savings institution with rate-sensitive liabilities and a large amount of fixed-rate mortgages perform best by (a) using an interest rate swap, (b) selling financial futures, or (c) remaining unhedged? Explain.

Reference no: EM131231356

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