Unmatched book

Unmatched book
If the average maturity of a bank's liabilities is less than that of its assets, it is said to be running an unmatched book. The term is commonly used with the Euromarket. Term also refers to the condition when a firm enters into OTC derivatives contracts and chooses to hedge that risk by not making trades in the opposite direction to another financial intermediary. In this case, the firm with an unmatched book hedges its net market risk with futures and options, usually. Related expressions: open book and short book. The New York Times Financial Glossary

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   One in which the maturities of assets and liabilities do not correspond. More specifically, when the average maturity of the liabilities is less than that of the assets. For a bank it can mean it has made long-term loans but has only short-term deposits, which may be withdrawn before the loan assets are realized. Sometimes known as lending long and borrowing short.
   ► See also Book.

Financial and business terms. 2012.

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Look at other dictionaries:

  • unmatched book — If the average maturity of a bank s liabilities ( liability) is shorter than that of its assets, it is said to be running an unmatched book. The term is commonly used with the Euromarket. Also refers to entering into OTC derivatives contracts and …   Financial and business terms

  • Unmatched Book — An imbalance that occurs when the maturity of a bank s assets, such as loans, does not match the maturity of its liabilities, such as investments and interest paying accounts, on the balance sheet. The imbalance can be either positive or negative …   Investment dictionary

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  • Book — A banker or trader s positions. The New York Times Financial Glossary * * * ▪ I. book book 1 [bʊk] noun 1. books [plural] ACCOUNTING the accounting records of a business; =account books; …   Financial and business terms

  • book — A banker or trader s positions. Bloomberg Financial Dictionary A summary of a trader s or desk s outstanding positions. Chicago Mercantile Exchange Glossary * * * ▪ I. book book 1 [bʊk] noun 1. books [plural] ACCOUNTING the accounting records of… …   Financial and business terms

  • Open book — See: unmatched book. The New York Times Financial Glossary …   Financial and business terms

  • Short book — See: unmatched book. The New York Times Financial Glossary …   Financial and business terms

  • open book — See: unmatched book …   Financial and business terms

  • short book — See: unmatched book. Bloomberg Financial Dictionary …   Financial and business terms

  • Father and Son (book) — Father and Son (1907) is a memoir by poet and critic Edmund Gosse, which he subtitled a study of two temperaments. The book describes Edmund s early years in an exceptionally devout Plymouth Brethren home. His mother, who died early and painfully …   Wikipedia

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