Finance Questions - Asset Liability Management?

1) Describe what can go wrong when thrifts originate and hold 30-year fixed rate mortgages funded by short-term retail deposits? 2) What is the benefit of extending liabilities to match the duration of assets? Is this a good thing when it reduces net interest margin? Why not just originate only adjustable... show more 1) Describe what can go wrong when thrifts originate and hold 30-year fixed
rate mortgages funded by short-term retail deposits?
2) What is the benefit of extending liabilities to match the duration of assets? Is
this a good thing when it reduces net interest margin? Why not just originate
only adjustable rate mortgages that match the maturity/duration of the
liabilities?
3) When is buying securitized MBS preferable to originating mortgage loans in
the local community and holding them in portfolio? How does this decision
translate into return on equity?
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