Describe the cash flow matching and the duration matching immunizationmethods.
Cash flow matching is an immunization approach that attempts to ensure that all future liability payouts are matched precisely by cash flows from bonds or fixed-income derivatives.
Duration matching is an immunization approach that is based on the duration of assets and liabilities. Ideally, the liabilities being matched (the liability portfolio) and the portfolio of assets (the bond portfolio) should be affected similarly by a change in interest rates. The mandates may use futures contracts (such as in a derivatives overlay)
contingent immunization—a hybrid approach that combines immunization with an
active management approach when assets exceed the present value of liabilities—may
allow for active bond portfolio management.
我在pz的主观题百宝箱里面看到cash flow matching的描述是Build a dedicated asset portfolio of high-quality fixed-income bonds that closely matches the amount and timing of the scheduled cash outflows.
我应该背哪个？