Depo market and Matching: Difference between pages

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The short-term interbank market for deposits and loans.  
1.  


The depo market also lends to and accepts deposits from non-bank financial institutions such as building societies and treasury departments of other corporates.
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. ''Financial reporting''
 
The Accruals concept in accounting.


(Not to be confused with Repo.)


== See also ==
== See also ==
* [[Money market]]
* [[Accruals concept]]
* [[Repo]]
* [[Correlation]]
* [[Diversification]]
* [[Immunisation]]
* [[Interest rate risk]]
* [[Modified convexity]]
* [[Modified duration]]
* [[Portfolio immunisation]]
 
[[Category:Manage_risks]]

Revision as of 11:26, 10 September 2020

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. Financial reporting

The Accruals concept in accounting.


See also