Duration Gap

Duration gap is the difference between the interest-rate sensitivity of assets and liabilities under a stated measurement method.

Why this matters to income investors

A mismatch between asset and liability sensitivity can hurt book value and earnings when rates move.

How to use duration gap in your research

Read the underlying loan and security disclosures. Check repayment speed, credit losses, financing, and payment priority because each can change the cash income available to investors.

This material is general education and information, not individualized investment, tax, or legal advice.