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Matching principle (See Chapters 36 and 49 of the Vernimmen)
Matching principle consists of matching the profile of Assets (duration, currencies, fixed rate / floating rate) with the profile of liabilities, so that cash outflows are matched by the cash inflows. Matching principle is also called Hedging principle or Cash flow matching approach.
Matching principle (See Chapters 36 and 49 of the Vernimmen)
Matching principle consists of matching the profile of Assets (duration, currencies, fixed rate / floating rate) with the profile of liabilities, so that cash outflows are matched by the cash inflows. Matching principle is also called Hedging principle or Cash flow matching approach.
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