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gap management

a technique using hedging to offset difference in the volume of assets and liabilities being repriced within a given time period. Repricing occurs because assets or liabilities mature and are reinvested at new rates or because they carry adjustable rates tied to some index. Gap refers to a specific period of time, such as a 30-day gap, in which assets repricing exceed or fall short of repricing liabilities.

Source : U.S. Department of the Treasury

Language : English

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