INSIDE THE BOX
MAY 16, 2008 - We often hear bankers say they don't have a rate view. These same bankers also say they try to manage their balance sheet to make money regardless of where rates go. This notion, that we call "managing in a box" (since all sides of the balance sheet are constrained), does not allow a bank to adjust to changing market or customer conditions. One thing banks that outperform the average institution in most rate environments do is to have a rate view. It is imperative to superior performance. By having a view, we don't mean to...
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