Federal Reserve Bank of Kansas City
New methods for savings and loans to hedge interest rate risk
Increased interest rate volatility in recent years has led to a greater volatility in profits at savings and loan associations. To help stabilize their profits, some S&L's are implementing interest rate hedging programs. These programs use financial instruments such as interest rate swaps, financial futures and options on financial futures. Because hedging programs introduce their own risks, S&L's should thoroughly examine all aspects of the programs before employing them.
Cite this item
Charles S. Morris & Thomas J. Merfeld, "New methods for savings and loans to hedge interest rate risk"
, Federal Reserve Bank of Kansas City, Economic Review, issue Mar, pages 3-15, 1988.
Keywords: Hedging (Finance) ; Savings and loan associations ; Interest rates
This item with handle RePEc:fip:fedker:y:1988:i:mar:p:3-15:n:v.73no.3
is also listed on EconPapers
For corrections, contact LDayrit ()