Maturity Matching

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Maturity Matching refers to a financial strategy where a company aligns the maturities of its assets and liabilities to manage liquidity risk effectively. By ensuring that the duration of liabilities matches the duration of assets, firms can minimize the risk of cash flow mismatches. This approach is crucial in maintaining financial stability and optimizing capital structure. Maturity matching is a key concept in corporate finance, aiding in strategic financial planning and risk management.

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