Asset/liability management

The task of managing the funds of a financial institution to accomplish two goals: (1) to earn an adequate return on funds invested and (2) to maintain a comfortable surplus of assets beyond liabilities. Also called surplus management.

Asset/Liability Management

Any active management strategy that involves coordinating a company's or fund's assets and liabilities such that the two together form an adequate return. Generally speaking, one aims to invest such that assets exceed liabilities as much as possible.

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