Following a widely cited report on unrecognized bank losses due to interest rate rises, Amit Seru and his co-authors have taken a close look at how banks used hedging to offset the recent rise in interest rate risk. Not only do they find minimal use of the tool, but banks that were most vulnerable, like … Continue reading Gambling for Resurrection: How U.S. Banks Hedged Interest Rate Risk During 2022 Monetary Tightening