The seven deadly sins, as described in Dante's epic poem The Divine Comedy, will send people on the down escalator to hell. Although Dante was no banker, the sins can provide general guideposts in the prudent management of bank investment portfolios. Here are some ways that those who manage a bank's bond portfolio can avoid falling into the financial inferno.

Pride. This can be defined as a banker's failure or refusal to seek help in managing the bank's investment portfolio when the portfolio gets complicated. The added complexities may be a result of the portfolio's size, the bank's changing interest rate risk exposure, liquidity risk, credit risk or other innumerable factors. 

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