Reference no: EM131078150
What kind of features or options hedges would be called for the following situations?
A) market interest rates are expected to increase her financial firms asset liability managers expect to liquidate a portion of their bond portfolio to meet customers demands for funds in the upcoming quarter.
B) your financial firm has interest sensitive assets of 79 million and interest sensitive liabilities of 88 million over the next 30 days, and market interest rates are expected to rise.
C) A survey of Tusky banks corporate loan customers this month January indicates that on balance, this group of firms will need to draw 160 5 million from their credit lines and February and March, which is 65 million more than the banks management has forecasted and prepared for. The banks economist has predicted a significant increase in money market interest rates over the next 60 days.
D) Monarch national bank has interest sensitive assets greater than interest sensitive my abilities by 24 million. If interest rates fall as suggested by data from the federal reserve board, the banks net interest margin may be squeezed due to the decrease in loan and security revenue.
E) Caufield thrift association finds that it's assets have an average duration of 1.5 years and is liabilities have an average duration of 1.1 years. The ratio of liabilities to assets is .90. Interest rates are expected to increase by 50 basis points during the next six months.
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What kind of features or options hedges would be called
: What kind of features or options hedges would be called for the following situations? market interest rates are expected to increase her financial firms asset liability managers expect to liquidate a portion of their bond portfolio to meet customers ..
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