Matching Strategy

Matching Strategy

An immunization strategy in which one matches the duration of assets in a portfolio to the duration of the liabilities. Duration is the number of years until the investor receives the present value of all income from a bond (including interest and principal), and is used to gauge a bond's sensitivity to interest rate changes. A matching strategy is intended to reduce the portfolio's sensitivity to interest rates in order to reduce the risk of loss to the holder.
References in periodicals archive ?
However, for most firms, the matching strategy is an objective rather than a day--today reality.
Although Africa Re is exposed to the unstable political and economic environment in some regions of Africa, these risks are largely mitigated by its geographic diversity, asset-liability matching strategy and the ease with which the corporation can shift its operations between its regional offices.
Both are great lessons underscoring the importance of matching strategy with reality, and describing what happens when that does not occur.
Best Buy is attempting to fight showrooming by adopting a price matching strategy.
For matching the image features, it was a common practice to use a histogram matching strategy called bin-by-bin measure [6].
The One Cup Project offers a groundbreaking dollar for dollar matching strategy.
In the third chapter the authors go through a thorough eXamination of the regression model with respect to its causal interpretation, its relation to the matching strategy, and to the propensity score.
Leadership is about matching strategy to situation and therefore requires an intellectual capacity to clearly diagnose the situation so as to clarify and understand the interplay between challenges, opportunities and pitfalls.
In continental Europe, 12% of plan sponsors have implemented an asset/liability matching strategy utilizing derivatives and one in 10 have immunized liabilities -- two common approaches to LDI.
This study used self-monitoring, coupled with a student/teacher matching strategy, to improve the classroom social skills of five inner-city middle school students, who were at risk for school failure.
Further, these banks that follow a consistent foreign (domestic) matching strategy have the smallest (largest) mean proportions of all foreign asset and liability variables.
Although Africa Re is exposed to the unstable political and economic environment associated with some of its operations in Africa, these risks are largely mitigated by the geographic diversification of its business, its asset-liability matching strategy and the ease with which the company can shift its operations between its regional offices.