LADG == duration of equity?

[deriv108]

We have N times about the duration of leveraged portfolio.
Is LADG(leverage-adjusted duration gap) equal to the duration of Banks’ equity? Why?
The two formulas look different. Wait for answer…thanks.

 

[Soccertom9]

I always intepreted them as the same…. if there is a positive LADG, that means your equity that is exposed to interest rates….aka if it goes up you lose value.

 

[june2009]

LADG = Aset duration - (debt weighting*debt duration)
I think it does = the equity duration. Reason being LADG*equity value*basis point yield curve shift = CHANGE in value of equity.
?

 

[deriv108]

Look diff formula to solve fi quiz in another thread.

 

[pfcfaataf]

[Asset duration - (debt weighting*debt duration) ] x Asset / Equity = the formula from the other thread