Matching: Difference between revisions
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imported>Doug Williamson m (Link with Diversification page.) |
imported>Doug Williamson (Expand definition 1 to clarify, and link with Correlation page.) |
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Arranging that in a portfolio of assets and liabilities the cash flows generated by the assets can be expected to meet the liability payouts either because the assets generate income of the right amount at the right time or because the market values of the assets are linked to the market values of the liabilities. | Arranging that in a portfolio of assets and liabilities the cash flows generated by the assets can be expected to meet the liability payouts either because (1) the assets generate income of the right amount at the right time or (2) because the market values of the assets are linked to (positively correlated with) the market values of the liabilities. | ||
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== See also == | == See also == | ||
* [[Accruals concept]] | * [[Accruals concept]] | ||
* [[Correlation]] | |||
* [[Diversification]] | * [[Diversification]] | ||
* [[Immunisation]] | * [[Immunisation]] | ||
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* [[Portfolio immunisation]] | * [[Portfolio immunisation]] | ||
[[Category: | [[Category:Manage_risks]] | ||
Revision as of 11:38, 4 September 2014
1.
Arranging that in a portfolio of assets and liabilities the cash flows generated by the assets can be expected to meet the liability payouts either because (1) the assets generate income of the right amount at the right time or (2) because the market values of the assets are linked to (positively correlated with) the market values of the liabilities.
2.
Equalising or approximating the modified duration of assets and liabilities in a portfolio, to manage interest rate risk.
3.
Equalising or approximating both the modified duration and the modified convexity of assets and liabilities in a portfolio.
4.
The Accruals concept in accounting.
