Navient Corporation (NAVI) has disclosed a new risk, in the Debt & Financing category.
Navient Corporation faces a potential risk in its asset and liability funding gap, as evidenced by the disparity between its assets and liabilities across various indices as of March 31, 2024. The company manages interest rate risk, including basis risk and repricing risk, by incorporating all derivatives in its Core Earnings analysis, regardless of their qualification as effective hedges. Although Navient endeavors to match assets and liabilities by the index and reset frequency, mismatches can occur, rendering the corporation susceptible to interest rate movements that may not align in direction or magnitude. This exposure is particularly pronounced during market disruptions, which could negatively impact earnings and financial stability.
The average NAVI stock price target is $15.50, implying -1.65% downside potential.
To learn more about Navient Corporation’s risk factors, click here.
