- Maturity Gap
- A measurement of interest rate risk for risk-sensitive assets and liabilities. The market values at each point of maturity for both assets and liabilities are assessed, then multiplied by the change in interest rate and summed to calculate the net interest income or expense.
This method, while useful, is not as popular as it once was due to the rise of new techniques in recent years. Newer techniques involving asset/liability duration and value at risk have largely replaced maturity gap analysis.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Duration gap — Contents 1 Definition 2 Overview 3 Torque analogy 4 See also Definition The difference between the duration of … Wikipedia
Interest Rate Gap — The difference between fixed rate liabilities and fixed rate assets. Interest rate gap is a measurement of exposure to interest rate risk. The interest rate gap is used to show the risk of exposure and is used by financial institutions and… … Investment dictionary
Static Gap — A measure of exposure or sensitivity to interest rates. Static gap is calculated as the difference between assets and liabilities of comparable repricing periods. Static gap can be calculated for short term and long term periods. Minus signs in… … Investment dictionary
Interest sensitivity gap — The interest sensitivity gap was one of the first techniques used in asset liability management to manage interest rate risk. The use of this technique was initiated in the middle 1970s in the United States when rising interest rates in 1975 1976 … Wikipedia
contractual gap — A crude measure of a financial institution s exposure to adverse consequences resulting from changes in prevailing interest rates. The contractual gap is a gap mismatch measure calculated using the contractual maturity and repricing dates for all … Financial and business terms
Zero-Gap Condition — When a financial institution s interest rate sensitive assets and liabilities are in perfect balance for a given maturity. The condition derives its name from the fact that the duration gap or the difference in the sensitivity of an institution s … Investment dictionary
One Tree Hill (TV series) — One Tree Hill Intertitle, seasons 1–4; 8 Genre Drama, Sports Format Teen drama … Wikipedia
Net Interest Income — All firms can divide the balance sheet into assets and liabilities. For banks the assets are commercial and personal loans, mortgages, construction loans and securities. The liabilities are deposits from customers. The net interest income (NII)… … Wikipedia
Net interest income — (NII) is the difference between revenues generated by interest bearing assets and the cost of servicing (interest burdened) liabilities. For banks, the assets typically include commercial and personal loans, mortgages, construction loans and… … Wikipedia
literature — /lit euhr euh cheuhr, choor , li treuh /, n. 1. writings in which expression and form, in connection with ideas of permanent and universal interest, are characteristic or essential features, as poetry, novels, history, biography, and essays. 2.… … Universalium