Seeking muted rate sensitivity, NYCB scraps all IR hedges

- By Lorenzo Migliorato
- 28 Aug 2024

New York Community Bank unwound all of its hedging derivatives in the second quarter – a move that executives claimed made its book virtually immune to changes in interest rates. However, the latest public disclosures indicate NYCB remains highly sensitive to shifts in the yield curve.

As of the end of March, the bank had $7.5 billion in notional value of interest rate swaps. This included $5.5

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