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Hi John
I understand that interest rate smoothing is when central banks gradually increase rates over a period of time and not all at once for various economic stability reasons
Matching is asset and liability management in relation to maturity periods but what is having a balance of fixed and variable rates known as, would this come under matching also or is it something different?
Thanks
GrahamIn relation to interest rate risk management, matching is not related to maturity periods.
For a good explanation of matching and smoothing, see the following technical article on the ACCA website:
https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f9/technical-articles/hedging.html
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