From doing this Q, it appears that I am not clear on the difference between LDI and ALM…I thought LDI was a form of ALM? Thanks.
It is.
Just to confirm then. LDI is a better answer and the CFA text is wrong?
Without knowing exactly how the manager “controlled interest rate risk by focusing on the asset and the liability side of the company’s balance sheet”, it’s impossible to say.
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I understand. Thanks again.
My pleasure.