What is the goal of Asset-Liability Management?

Finance Dec 25, 2020

Expert Solution

The goal of Asset Liability Management is to match the duration of assets with the duration of liabilities so that there is no imbalance in the maturity of the portfolio. Suppose if the duration of liabilities is less and assets is more, it might lead to the maturity of liabilities earlier and hence because of lack of assets, we wouldn't be able to finance those liabilities. Similarly, depending on the business model, the maturities have to be balanced

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote