Moreover, the success of interest-rate-risk management, especially the exceptionally rapid timing required by dynamic risk adjustments, requires that the ultimate counterparties to the GSEs' transactions provide sufficient liquidity to finance an interest-rate-risk transfer that counters the risk.
5  Leland C. Brendsel, "Government-Sponsored Enterprises," Hearing before the Subcommittee on Oversight of the Committee on Ways and Means, House of Representatives, the 101st Congress, September 28, 1989. 2  BIS Review 37/2005  Otherwise, large and rapid dynamic adjustments will result in sharp changes in the prices for rebalancing and hedging a mortgage portfolio.