Big Banks Geared For Higher Rates < Am Bkr

The increase in the one-year “duration gap” between assets and liabilities represents a dramatic pivot. In mid-2008, when market rates were falling and the economy was approaching the most turbulent phase of the recession, short-term assets and liabilities were roughly balanced. In late 2003 and early 2004, when rates were rising as the Federal Reserve tightened monetary policy, short-term assets less short-term liabilities measured about 9% of total assets among the large bank group.

via www.americanbanker.com