Serving the Quantitative Finance Community

 
User avatar
kremer
Topic Author
Posts: 0
Joined: May 18th, 2012, 4:30 pm

liquidity - interest rate gap analysis

August 10th, 2012, 2:32 am

Hi,Let say I would like to make interest rate or liquidity gap analyses and I have 3 assets with following cash flowslets assume I have interest bearing liabilities)Ins_1 : 100 USD with 1 mount maturityIns_2 : 100 USD with 2 mount maturityIns_3 : 100 USD with 3 mount maturityWhen I plot these cash flows into time buckets I get, 1M 2M 3M 100 USD 100 USD 100 USDBut some others plot these cashflows like 1M 2M 3M 300 USD 200 USD 100 USDI mean they show all cash flow at the begining. Does anybody know the logic of this point of view? Thanks in advance