leverage adjusted duration gap

anyone understand this? i’m having trouble connecting the dots in the explanation on schweser book 2 pg. 28. if rates increase, the market value of equity should increase because the present value of the liabilities goes down, but how does this take into account the fact that LADG < 0?

LADG I think represents the net duration difference between assets and liabilities after considering their effective weights. So it is the net duration of equity in effect. Now if LADG < 0, it means you have a net negative duration. So as interest rates increase, positive duration would imply an decrease in market value (of equity). But as LADG < 0, it will have the opposite effect and equity’s market value will increase. Did that answer your query?