Convexity

[sfad]

Sorry copy-pasting from another question, but when convexity of liabilities is less than convexity of assets, we have:
When interest rates increase then Decrease in liabilities > Decrease in assets
When interest rates decrease then Increase in liabilities < Increase in assets
Is that correct?

 

[S2000magician]

Yup.
We like higher convexity in our assets, lower in our liabilities.