Income gap analysis and duration gap analysis are basically the same thing,so hedging against one gap automatically hedges against the other.

Question

Quizplus · Accepted Answer

Income gap analysis and duration gap analysis are not the same thing. Income gap analysis focuses on the difference between interest income and interest expense, while duration gap analysis looks at the difference between the durations of assets and liabilities. Hedging against one gap may not necessarily hedge against the other.

Income Gap Analysis and Duration Gap Analysis Are Basically the Same