ACCA FM Classroom - Syllabus G4. Hedging techniques for interest rate risk ^{3 / 3}

G1b) Describe and discuss different types of interest rate risk:
i) gap exposure
ii) basis risk

G4a) Discuss and apply traditional and basic methods of interest rate risk management, including:
i) matching and smoothing 
ii) asset and liability management
iii) forward rate agreements

b) Identify the main types of interest rate derivatives used to hedge interest rate risk and explain how they are used in hedging. (No numerical questions will be set on this topic)