Uncertainty about the exact lives of assets prevents precise maturity matching in an ex post (i.e., after the fact)sense even though it is possible to match maturities on an ex ante (expected)basis.

Question

Quizplus · Accepted Answer

Ex post matching of maturities refers to matching the actual maturity of assets and liabilities after they have been incurred. As the exact lives of assets are uncertain, it is not possible to precisely match maturities in an ex post sense. However, it is possible to match maturities on an ex ante basis by estimating the expected lives of assets and liabilities.

Uncertainty About the Exact Lives of Assets Prevents Precise Maturity