Discover what a matching strategy in finance entails and how investors use it to choose investments whose payouts align with future liabilities and planned expenses.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Todd Investment Advisors has launched an asset/liability matching strategy. It invests in bonds to match short-dated liabilities--from five to 15 years in duration--and then uses exchange-traded funds ...

Asset Liability Management or ALM is a mechanism designed to address the risk faced by banks due to a mismatch between assets and liabilities, which arise either because of liquidity or because of ...

Liability-driven investing, or LDI, is an investment strategy that focuses on matching assets with liabilities. This strategy is used by pension plans to hedge against market-related risks that could ...

Assets generate income and appreciate in value, while liabilities drain resources and depreciate over time. Do you want to improve your net worth? Probably so. But if you’re like many people, you ...

On the go: Soaring inflation may prevent actuaries from being able to match schemes’ underlying liabilities with appropriate assets, with costs set to increase, the Institute and Faculty of Actuaries ...

Anyone going into business needs to be familiar with the concepts of assets and liabilities, revenue and expenses. If your business were a living organism, these would be its vital signs. Assets and ...

In recent years, many US plan sponsors have adopted liability-driven investing (LDI) in response to changes in accounting standards (FASB 87) and funding requirements (Pension Protection Act). Others ...

British Airways’ New Airways Pension Scheme is the latest large fund to commit itself to infrastructure investment to manage long-term inflation risk. The £8bn NAPS has launched a portfolio of real ...

This chapter discusses the valuation of assets and liabilities under Solvency II. Given that strategic asset allocation and investment management are key aspects of an insurer’s business, especially ...