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Bank assets are typically laddered so that they aren’t dominated by 10 year assets that were all originated at the same time. A well run bank keeps some amount
by kasey_junk 4y ago
Bank assets are typically laddered so that they aren’t dominated by 10 year assets that were all originated at the same time.
A well run bank keeps some amount of assets in lots of different durations including longer terms, just not all at once.
- armada651 4y agoRight, but that's more of a problem with diversification, it doesn't make a 10-year investment inherently high-risk.
- kasey_junk 4y agoIt’s not exposed to credit risk but is exposed to interest rate risk.