Nature of assets and liabilities matching principle

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Unformatted text preview: ts and liabilities (matching principle) Dr. David P. Echevarria Dr. All Rights Reserved 4 TERM STRUCTURE OF INTEREST TERM RATES RATES A. Comprehensive Explanation for Term Comprehensive Structure and Shape of the Yield Curve Structure 1. The yield curve has much to do with investor The expectations about the economy. expectations 2. Lenders prefer less risk and more liquidity. 3. Borrowers prefer longer terms. 4. Implications of flat and inverted yield curves Dr. David P. Echevarria Dr. All Rights Reserved 5 Inverted Yield Curve Nov 14, 2000 Dr. David P. Echevarria Dr. All Rights Reserved 6 Yield Curve Aug 29, 2011 Dr. David P. Echevarria Dr. Al...
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This document was uploaded on 02/11/2014.

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