susana

I was under the impression that CF Matching wasn't really affected by shifts/twists in the interest rate term structure? You set it at t=0 and more or less just let it ride...

But the problem with them is: You have to have VERY good estimates on the timing/value of your cash outflow obligations. This is very difficult for many firms who need to do ALM (which is why many of them do Immunization instead).

I could be 100% wrong though Someone yell at me if I am. I haven't made it back around to this study session yet for final review... i'm just shooting from the hip.