Yield Curves and Gap Reports

Well… if this isn’t my new favourite area of study! We had a few class examples with a not so subtle Exam Hint for the use of a Gap Report in the final exam.

Yield Curve Theory is something I understand a little but we have some more work to do on this before I really follow along with how they are comprised and used.

But Gap Reports… I got that one beautifully. I understand that the ‘total’ column comes from the Balance Sheet; that the columns with figures in them for the years are forward estimates of areas of change from a shift in interest rates; that this is a Risk Analysis Tool used by banks; and that this is what I’d like to do after I graduate!

I’m more motivated than ever to get into the class for Financial Markets and Institutions next semester as well as Competitive Analysis.

Anyway, off to a tutorial.

Have a delightful day
-C

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