Foreign Exchange: On balance sheet hedge

Yesterday I reviews Saunders' un-hedged bank: $200 million in U.S. dollar deposits fund investments which are split (50%/50%) between US dollar assets and British assets. We saw that un-hedged foreign currency exposure directly impacts returns in either direction (i.e., a material risk factor). In on-balance sheet hedging, the bank instead funds with $100 million in British Pound Sterling: the asset and liabilities are matched in regard to their foreign currency exposure (please note: this does not immunizes; asset/liability durations may different such that interest rate exposure remains).

[@terrythetuffkunt9215]

13 years old, recommended to me now.
RUclips was a completely different place then.
This is an O.G video.

[@vivapumas]

Good explanation! Thank you so much crystal clear

[@naixieweix]

thanks! was doing my assignment and really needed help, and i found this video!
thanks again, bionic turtle!

[@Roundwill]

Really appreciate your video, please keep posting!

[@bionicturtle]

You're welcome! Thanks for watching!

[@bionicturtle]

@tradingheroes I'm sure there is

[@lauraliu136]

Can you share the excel with us?

[@TradingHeroes]

Just seems like there should be an easier way to explain this.