Portfolio of collateralized debt obligations

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Northridge First National Bank has a portfolio of collateralized debt obligations. Senior management decides to hedge their portfolio against loss of principal. To do so, they would:

a. purchase forward interest rate contracts.

b. become a counterparty to an interest rate swap.

c. purchase credit default swaps.

d. short the assets.

e. do none of the above.

Reference no: EM133113582

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