4 ms·
I saw on another HN thread that when a bank has bonds designated as "hold to maturity" they are not allowed to hedge against rate risk--because there isn't any!
by el_nahual 4y ago
I saw on another HN thread that when a bank has bonds designated as "hold to maturity" they are not allowed to hedge against rate risk--because there isn't any! The bonds will be held til expiration for purposes of the coupon, not to trade.