Byusnewsr1-

Jan 12, 2021

Risks to liquidity and bond yields if rates tighten

Risks to liquidity and bond yields if rates tighten

Banks are exposed to the interest rate and liquidity risk of their bond portfolios if rates start to rise. “Any tightening in interest rates would depress investment gains in AFS (available for sale) and HFT (held to maturity) (direct impact) categories,” the RBI said in its report on the financial stability. AFS, HTM are categories […]
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