Fixed Income Strategies

Liability Matching

Definition

What is Liability Matching?

Selecting investments whose cash flows align with expected future payments.

Example in practice

A company buys bonds that mature when employee benefits become due.

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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.

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