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Definition of 'Maturity Mismatch'
The tendency of a business to mismatch its balance sheet by possessing more short-term liabilities than short-term assets and having more assets than liabilities for medium- and long-term obligations. How a company organizes the maturity of its assets and liabilities can give details into the liquidity of its position.
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Investopedia explains 'Maturity Mismatch'
Changes in a company's maturity profile can also be useful in learning more about the status of a company because it indicates a company's ability to borrow. Using the maturity mismatching structure of a company along with additional information can help investors to assess the company's liquidity position.
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Search results for 'Maturity Mismatch'
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http://www.investopedia.com/articles/bonds/08/duration-convexity.asp
... Duration for Gap Management Many banks have a natural mismatch between asset and ...
term bank certificates of deposit (CD) with fixed terms to maturity served to ...
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http://www.investopedia.com/articles/pf/07/asset_liabilities.asp
... In general, the longer the maturity of a bond, the longer its duration and ... A duration
mismatch would be to borrow money for years and invest the proceeds in a 10 ...
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