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Commentaries — November 5, 2002

Fannie’s Duration Gap Update The attention Fannie Mae’s duration gap has garnered highlights how difficult it is to hedge this massive portfolio. We believe they have no choice but to incur interest rate risk. This is a nice way of saying they have to hope interest rates move in their favor.

Open Fannie’s Duration Gap Update
The attention Fannie Mae’s duration gap has garnered highlights how difficult it is to hedge this massive portfolio. We believe they have no choice but to incur interest rate risk. This is a nice way of saying they have to hope interest rates move in their favor.