SE MN | Reality speaks - 5/1/2023 11:42
Banks wouldn't go beyond 5 years on a rate (still don't)
I looked at a group of about 50 banks, and on average, as of the end of 2022, 24% of their deposits were loaned out in 5-15+ year loans. The range was wide. When you say banks won't go beyond 5 years on rate, do you mean they somehow hedge any interest rate exposure over 5 years, on loans over 5 years? Would the hedging get included in either available for sale/hold to maturity securities? Or how would they report their hedging strategies? Do the hedges get reported to the FDIC separate from AVS and HTM securities? |
I think we are just seeing the beginning.
