Definition for : Maturity mismatch

If, for a given maturity, cumulative Assets are less than cumulative Liabilities, the company will be unable to meet its obligations unless it finds a new source of funds. This deficiency is called the company's maturity mismatch, similar to that of a financial institution that borrows short-term funds to finance long-term Assets.

(See Chapter 12 Financing of the Vernimmen)

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