Yup, that is basically inherent. In order to hedge their interest rate exposure they'd have to find some counterparty that can afford to do it - there is no mag

Yup, that is basically inherent. In order to hedge their interest rate exposure they'd have to find some counterparty that can afford to do it - there is no magic hedging or insurance fairy - which with previous interest rates would probably wipe out all their interest income and expose them to counterparty risk at the same time if they could even find anyone.