Three services that financial institutions provide are
denomination matching, ______ matching, and absorbing credit risk.
(no answer choices available)
PROVIDE NOTES ON SECURITY AND
INVESTMENT MANAGEMENT IN FINANCIAL INSTITUTIONS
Overview of financial institutions investment practices
Fundamental principles of sound security investments
Formulating investment portfolio policies and strategies
Banks investment portfolio content and management
Factors affecting portfolio creation and management in
banks
The role and functions of Investment portfolio manager
Portfolio management in insurance and pension funds
Security and investment portfolio management empirical
evidences
Financial institutions use derivatives instruments to hedge
their asset–liability risk exposures. The financial institutions`
goal is to reduce the value of their net worth that is at risk due
to adverse events.
What are the reasons why a financial institution may choose to
hedge its portfolio selectively?
Substantiate your response with examples.