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In finance and accounting, and particularly in asset and liability management (ALM), the duration gap measures how well matched are the timings of cash inflows (from assets) and cash outflows (from liabilities), and is then one of the primary asset–liability mismatches considered in the ALM process. The term is typically used by banks, pension funds, or…
Measurement & Art
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assets liabilities duration gap interest management rates risk thus financial see equity rate approach value firm's matching firm finance immunized
| Subject | Predicate | Object | Confidence | Src |
|---|---|---|---|---|
| Duration gap | is a | difference between the duration - i.e. the average maturity - of assets and liabilities held by a financial entity | 0.90 | text |
| Duration gap | measured by | Formally | 0.60 | section |
| Duration gap | measured by | Under | 0.60 | section |
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