Question: What is spread effect in the Repricing Gap Model? The value of an FI to its owners. The premium paid to compensate for the future
What is spread effect in the Repricing Gap Model?
The value of an FI to its owners.
The premium paid to compensate for the future uncertainty in a securitys value.
The effect of mismatch of asset and liabilities within a maturity bucket.
The effect that a change in the spread between rates on RSAs and RSLs has on net interest income as
interest rates change.
Periodic cash flow of interest and principal amortization payments on longterm assets that can be
reinvested at market rates.
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