Question
A bank has just completed an internal stress test and finds that it has a repricing risk of -0.5% to its cash flow for every
A bank has just completed an internal stress test and finds that it has a repricing risk of -0.5% to its cash flow for every 1% upward shift in interest rates. What should the bank do to mitigate its risk?
Group of answer choices
It should securitize and sell its loan portfolio, retaining only the servicing rights.
It should become a counterparty to a currency swap.
It should sell some of its real estate assets.
It should issue more stock to bolster capital reserves.
It should become a counterparty to an interest rate swap.
Either a or e.
Either a, c, d, or e.
All of these are viable.
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Using And Interpreting Statistics
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