Symmetric cash matching

Symmetric cash matching

An extension of cash flow matching that allows for the short-term borrowing of funds to satisfy a liability prior to the liability due date, reducing the cost of funding liabilities.

Symmetric Cash Matching

The process of borrowing in the short-term to pay a liability before it is due such that it reduces the cost of funds. For example, symmetric cash matching may reduce the interest rate a company owes. Symmetric cash matching is a form of cash flow matching and allows a company to maintain balance in a portfolio and the lowest possible cost.