Cashflow matching
Encyclopedia
Cashflow matching is a process of hedging
in which a company or other entity matches its cash outflows (i.e. financial obligations) with its cash inflows.
Hedge (finance)
A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of...
in which a company or other entity matches its cash outflows (i.e. financial obligations) with its cash inflows.
See also
- Cash-flow hedging
- Duration gapDuration gap-Definition:The difference between the duration of assets and liabilities held by a financial entity.-Overview:The duration gap is a financial and accounting term and is typically used by banks, pension funds, or other financial institutions to measure their risk due to changes in the interest rate...
- Dedicated Portfolio TheoryDedicated Portfolio TheoryDedicated Portfolio Theory, in finance, deals with the characteristics and features of a portfolio built to generate a predictable stream of future cash inflows...
- Fannie Mae