Re: 2: Yes, I agree. I think you could deal with this in various ways, e.g., calculating the expected relative values of committed vs floating funding, or doing the rebalancing every few years instead of all the time. But I also think that there is some meaningful difference between a) the underlying framework, and b) how you choose to go about it, and I think this post was more about a)
Re: 2: Yes, I agree. I think you could deal with this in various ways, e.g., calculating the expected relative values of committed vs floating funding, or doing the rebalancing every few years instead of all the time. But I also think that there is some meaningful difference between a) the underlying framework, and b) how you choose to go about it, and I think this post was more about a)