Liability Matching

Dictionary Says

Definition of 'Liability Matching'

An increasingly popular investment strategy that attempts to time future assets sales and income streams to match against expected future expenses. The strategy has become widely embraced among pension fund managers, who attempt to minimize a portfolio's liquidation risk by ensuring asset sales, interest and dividend payments correspond with expected payments to pension recipients. This stands in contrast to simpler strategies that attempt to maximize return without regard to withdrawal timing.
Investopedia Says

Investopedia explains 'Liability Matching'

Liability matching is growing in popularity among sophisticated financial advisers and wealthy individual clients, who are using multiple growth and withdrawal scenarios to ensure that adequate cash will be available when needed. The use of the Monte Carlo method of analysis, which uses a computer program to average the results of thousands of possible scenarios, has grown in its popularity as a time saving tool used to simplify a liability matching strategy.
Search results for

'Liability Matching'

  • Top 6 Uses For Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-bond-uses/expense-matching-immunization.aspx
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Top 6 Uses For Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-bond-uses
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Top 6 Uses For Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-bond-uses/diversification.aspx
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Top 6 Uses For Bonds

    http://www.investopedia.com/articles/bonds/09/top-uses-bonds-investments.asp
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Top 6 Uses For Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-bond-uses/managing-interest-rate-risk.aspx
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Top 6 Uses For Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-bond-uses/saving-bonds.aspx
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Top 6 Uses For Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-bond-uses/long-term-planning.aspx
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Top 6 Uses For Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-bond-uses/long-term-planning.aspx?lastSlide=1
    ... Bonds enable them to match their assets to liabilities (commonly known as
    asset/liability matching) with a much higher degree of certainty than with other ...
  • Gauge Portfolio Performance By Measuring Returns

    http://www.investopedia.com/articles/fundamental-analysis/08/performance-analytics-returns.asp
    ... risk-adjusted return; maximum income; preservation of capital; liability matching.
    These varied goals mean that performance must be calculated frequently and ...
  • CFA Level 1 Study Guide - Liabilities - Current Liability Basics ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/current-liability-basics.asp
    ... 8.21 Asset Impairment. 9. Liabilities: 9.1 Introduction; 9.2 Current Liability Basics;
    9.3 Income Tax Terminology; 9.4 Tax Deferred Liabilities; 9.5 Permanent Vs ...

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