Bank Portfolio Manager In this scenario, you are very concerned about the FDIC regulations and can only invest in Investment Grade fixed income products. While a higher yield is of value, safety of principle and low volatility are just as important. Also, you need to try to attain at least a 3% spread above the average 0.5% you are currently paying customers on money markets, CDs, and savings accounts to remain profitable. There is also a concern that the short-term borrowing rate (liabilities) may exceed the long- term investments (assets) you make. If this occurs the bank could lose money and may need to spend capital to purchase interest rate swaps; thereby, losing yield on its investments.