GlobalTech Horizons is a multinational corporation with significant investments in fixed-income secu

GlobalTech Horizons is a multinational corporation with significant investments in fixed-income securities and a substantial amount of floating-rate liabilities tied to benchmark rates such as the Secured Overnight Financing Rate (SOFR). The CFO anticipates that the central bank will announce a restrictive monetary policy, leading to an overall rise in interest rates. The risk management committee is tasked with evaluating the potential impact on their bond portfolio, acknowledging that interest rates and bond prices bear an inverse relationship. Furthermore, the committee is reviewing different techniques to precisely measure the interest rate sensitivity of their capital while exploring modern derivative techniques to hedge their exposure to the rising rates.