Question: How would you interpret a negative duration GAP. What type of asset/liability structure would lead to a negative duration GAP? Would a negative duration GAP

How would you interpret a negative duration GAP. What type of asset/liability structure would lead to a negative duration GAP? Would a negative duration GAP ever be desirable? If so, under what type of interest rate forecasts? How could these banks use an interest rate swap to magnify their strategic interest rate risk sensitivity?

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