Question: A bank (called Acquirer C ) has floating-rate deposits and fixed-rate loans, and plans to acquire one of two target insurance companies, A and B

A bank (called Acquirer C) has floating-rate deposits and fixed-rate loans, and plans to acquire one of two target insurance companies, A and B. Target A has a positive duration gap (DG), while target B's duration gap is negative.

Which target is more attractive to Acquirer C, if all else equal?

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