Advantages of cash flow matching and dedicated strategies include ______.
I.once the cash flows are matched there is no need for rebalancing
II.cash flow matching typically earns a higher rate of return than active bond portfolio management
III.financial institution's liabilities often exceed the maturity of available bonds,making cash matching even more desirable

Question

Quizplus · Accepted Answer

Cash flow matching eliminates the need for rebalancing once cash flows are matched, as the cash flows from the assets will meet the liabilities as they come due.

Advantages of Cash Flow Matching and Dedicated Strategies Include ______