What does exposure falls within established tolerances mean

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Understanding Interest rates and derivatives

1) What does "exposure falls within the established tolerances" mean? What is exposure? What is established tolerance?

"Alliance uses economic value sensitivity analysis and re-pricing gap analysis to evaluate potential long-term effects of changes in interest rates. It then enters into interest rate swaps to convert portions of its floating-rate debt to fixed or its fixed-rate debt to floating to ensure that Alliance's exposure falls within the established tolerances."

Reference no: EM132063125

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