Consider the FI in problem (6). a. What additional risk exposure problems does the FI face? b.

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Consider the FI in problem (6).

a. What additional risk exposure problems does the FI face?

b. What are some possible solutions to the duration mismatch and the illiquidity problems?

c. What advantages does securitization have in dealing with the FI’s risk exposure problems?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 05:17 AM

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Consider the FI in problem (6). a. What additional risk exposure problems does the FI face? b.

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a First the commercial loans financed with demand deposits have a serious duration gap problem Sec...View the full answer

Financial Institutions Management A Risk Management Approach

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