Top of Mind

Responding to "Fed Zeroes In on Vulnerability to Rate Rise" in the Wall Street Journal, Professor James Choi noted: It seems intuitive that locking in a fixed stream of interest income (or payments) for a long time is a risk-reducing move, but this article shows that long-maturity fixed-rate debt actually exposes you to interest rate risk unless the other side of your balance sheet has a similarly long cash flow duration.

3:00 PM - 17 Jul 13