Question: What is overhedging? * Selectively hedging a proportion of an Fl ' s balance sheet position. * Choosing to bear some interest rate risk as

What is overhedging?
* Selectively hedging a proportion of an Fl's balance sheet position.
* Choosing to bear some interest rate risk as well as credit and FX risks.
* Reducing the risk to the lowest level possible.
* Using more hedge vehicles than is necessary to offset the risk in the cash asset.
* Partially hedging the individual assets and liabilities.

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