Bond immunization anybody, about, between, difference

DoubleDip

I am not too clear about the difference between multi-liability and cash flow- can anybody lay it out?

bodhisattva

With all due respect, you should probably give the chapter another reading.

They're very different and yet fairly crucial concepts.

In short, multiple liability immunization matches the aggregate durations of your assets and liabilities (with some specifications, like the range of durations of your assets must be larger than liabilities, etc.).

Cash flow matching utilizes bond coupon and principal payments to match your liability stream.

So one matches durations, one matches cashflows.

Again, though, you really need to re-read that entire section if you're asking this question this late in the game.