Interest gap and Rating agencies: Difference between pages

Revision as of 15:32, 20 August 2013

Independent organisations that assess credit the quality of corporate and government debt.

The main agencies are Moody’s, Standard & Poor’s and Fitch.

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-A mismatch in the timing at which interest rate assets and liabilities are repriced.
+Independent organisations that assess credit the quality of corporate and government debt.
-A positive gap (assets repricing more quickly than liabilities) means an exposure to falling interest rates and vice versa.
+The main agencies are Moody’s, Standard & Poor’s and Fitch.
-Banks and other financial institutions commonly have a 'structural' interest gap, resulting from the nature of their business and the structure of their balance sheets.
+== See also ==
+* [[AAA]]
+* [[Credit rating]]
-This structural interest gap is usually negative.
+* [[Ratings]]
-The negative interest gap results from shorter-term liabilities funding longer term assets.
+[[Category:Treasury_operations_infrastructure]]
-== See also ==
-* [[Assets]]
-* [[Gap report]]
-* [[Liabilities]]
-* [[Liquidity gap]]
-* [[Maturity ladder]]
-* [[Exposure]]