Capital Markets School - October 2023

Internal Use Only

Expected Price

$10,000,000

$7,064,181 $8,000,708

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Internal Use Only

Market Risk

• Chasing yield by going out on the yield curve increases the market risk to the individual investment and overall portfolio

• Proper risk management of the portfolio involves understanding this relationship, understanding the current position of the portfolio, understanding the earnings needs of the bank, and balancing the risk with the overall structure of the portfolio

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