A commercial bank has fixed-rate, long-term loans in its asset portfolio and variable-rate CDs in its liability
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A commercial bank has fixed-rate, long-term loans in its asset portfolio and variable-rate CDs in its liability portfolio. Bank managers believe interest rates will increase in the future. What side of a fixed-floating rate swap would the commercial bank need to take to protect against this interest rate risk?
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Related Book For
Financial Markets And Institutions
ISBN: 9781264098729
8th Edition
Authors: Anthony Saunders, Marcia Cornett
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