Measuring interest rate sensitivity and the dollar gap
{"Image DocumentName": "Measuring interest rate sensitivity and the dollar gap", "Image ImageDescription": "Three problems with dollar gap management: Focus on net interest income rather than shareholder wealth. Dollar gap may be set to increase NIM if interest rates increase, but equity values may decrease if the value of assets fall more than liabilities fall (i.e., the duration of assets is greater than the duration of liabilities). Financial derivatives could be used to hedge dollar gap effects on equity values.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}