What is Liability Matching?
Liability Matching An institutional portfolio strategy designed to structure asset cash flows and durations so that they align with the timing and value of expected liabilities, commonly used by pension funds and insurers (CFA Institute, GIPS, BIS).
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Liability Matching” Used in Practice?
Pension funds use liability matching to ensure asset cash flows coincide with expected benefit payments, minimizing funding and reinvestment risk.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Liability Matching” Free with Termify
Master Liability Matching and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Liability Matching?
An institutional portfolio strategy designed to structure asset cash flows and durations so that they align with the timing and value of expected liabilities, commonly used by pension funds and insurers (CFA Institute, GIPS, BIS).
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Liability Matching and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: