Few Banks Are Hedging Interest-Rate Risk

3 min read The Wall Street Journal 18 Apr 2023, 04:31 PM IST

A recent paper focuses on how banks handle rising rates

A bank will survive only as long as it can carry the bluff that it can redeem all deposits even if it were to do so all at once. To SVB’s misfortune, its bluff got called. Avoiding that fate is a perennial challenge for a bank (AFP) (HT_PRINT) — A bank will survive only as long as it can carry the bluff that it can redeem all deposits even if it were to do so all at once. To SVB’s misfortune, its bluff got called. Avoiding that fate is a perennial challenge for a bank (AFP) **(HT_PRINT)**

Few U.S. banks protected themselves against rising interest rates during the Federal Reserve’s monetary-tightening campaign last year, according to a research paper that says unhedged securities holdings are more widespread than investors might realize.