There are trade-offs. Banks that hold all their loans to maturity get a benefit in knowledge of their borrower's true credit, but they lose the ability to hedg

There are trade-offs. Banks that hold all their loans to maturity get a benefit in knowledge of their borrower's true credit, but they lose the ability to hedge the idiosyncratic risk of their borrower base. (Example: A local bank in North Dakota that is holding all the recent mortgage loans to maturity may be struggling now)