Asset Liability Matching (ALM)
- The situation is always very fuzzy without a great deal of background knowledge as to what the value of the assets is in their case, and how it matches up against the liabilities.
-- Thomas S. Sutton (Pacific Life / ACLI)
- Insurance Company Insolvencies
- [PDF- ??????p, 0509-VIDEO-CSPAN] ->Not on govinfo.gov
Let me be elementary to begin.
- Asset/liability matching in its purest form likely means that we purchase assets such that whenever cash is needed to meet obligations, those assets will provide that cash.
- However, in the real world, we are going to be mismatched either because we are not able to match 100% or because we make a corporate decision to be unmatched.
1990 - RATING AGENCIES AND ASSET/LIABILITY MATCHING, Society of Actuaries - 18p
- Assumptions regarding long-term expected returns play a critical role in Asset/Liability Management (ALM) of financial institutions.
- This article questions the validity of assumptions regarding long-term expected returns used by many financial institutions at the present time.
2003 - Are We In A Different Market Paradigm?, Society of Actuaries