Could also hedge with swaps or swaptions or mortgage pass throughs. Banks who are very long mortgages frequently short passthroughs. They take enough risk off

Could also hedge with swaps or swaptions or mortgage pass throughs. Banks who are very long mortgages frequently short passthroughs. They take enough risk off the table to not have the risk exposure of a hedge fund. https://en.m.wikipedia.org/wiki/Mortgage-backed_security https://en.m.wikipedia.org/wiki/Mortgage-backed_security