HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Bonds » combination matching

Combination Matching

Definition
A bond portfolio strategy in which liabilities are broken into two time periods, known as short and long. During the short period - typically the first few years (usually no more than five) - cash flow matching is used to cover liabilities. The short period is followed by duration matching (multi-period immunization) for the subsequent years. A combination matching strategy is used when there is an increased risk in yield curve shifts which could lower the value of investments. also called horizon matching.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.