duration matching protects: ➖ liquidity via cashflow modulation, by helping liability cashflows match asset cashflows ➖ solvency via asset and liability value modulation, by reducing asset value loss when yields fall and reducing liability value loss when yields raise

Illya Gerasymchuk 2025-08-13 00:29

duration matching protects liquidity and solvency by modulating yield shift effects on the value of assets and liabilities