The fractal nature of asset-liability matching

What type of asset-liability matching am I talking about Asset-liability matching means different things to different people, even when you think you’re dealing with a specific situation and therefore talking about the same thing. Painting with broad strokes, there’s asset-liability matching (ALM) when managing a pension fund, an insurance business, or a corporation’s balance sheet. …

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How to think about swaps

Swaps is one of those topics that is perceived to be basic, easy, and intuitive. But not really. We study them briefly in business school and in the CFA curriculum, but that happens in a vacuum. We cannot see the thing*. Later on in life, we find ourselves in meetings with financial advisors discussing swaps. …

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