Which of the following situations would be most likely to result in a negative mark-to-market for a bank borrowing short term and lending long term?
A) credit spread tightening of the long term position
B) if the yield curve is inverted
C) if the yield curve becomes steeper
D) if there is a downward parallel shift in the yield curve

Question

Quizplus · Accepted Answer

The Answer of Which of the following situations would be most likely to result in a negative mark-to-market for a bank borrowing short term and lending long term?
A) credit spread tightening of the long term position
B) if the yield curve is inverted
C) if the yield curve becomes steeper
D) if there is a downward parallel shift in the yield curve

Which of the Following Situations Would Be Most Likely to Result