S, you and myself clearly don’t understand DTA and DTL well, a review is in order!!
It could vert easily be supposed to say interest rates, if interest rates decline, the market value of fixed rate debt will increase. As Equity = Assets - Liabilities, a decrease in rates would increase the MV of debt on your balance sheet and eat away at your equity claim on assets.
Interest rates are immaterial, this is about deferred tax assets and liabilities. The testable material here is what happens when tax rates go up or down. As for the notion that reduced interest rates will increase your liabilities-- The balance sheet liability for a bond is the present value of the remaining cash payments using the market rate when the bonds were issued. At maturity, the liability will equal par. – I take this to mean that debt liabilities aren’t revalued on a balance sheet based on the markets- do you contest?