Fixed Income Strategies

Cash-Flow Matching

Definition

What is Cash-Flow Matching?

Building a portfolio whose coupons and maturities directly fund scheduled liabilities.

Example in practice

Bond payments are arranged to cover each year's pension obligations.

Keep learning

A portfolio of debt instruments with maturities spread across regular intervals.

A bond strategy concentrated in short and long maturities with little exposure in the middle.

A bond strategy concentrating maturities around one target date.

The complete collection of investments owned by an investor or managed under one mandate.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.