Asset Liability Management?

Just wondering, what does asset liability management entails in terms of job itself. In banking, asset and liability management is the practice of managing risks that arise due to mismatches between the assets and liabilities (debts and assets) of the bank. Though many insurance companies also have this practice.

So which group does this belong to in a bank? Treasury? Really back-office?

3 Comments
 

at my place, it means trading swaps and swaptions, long/short bonds, etc. sometimes they trade for profits, but most of the time they hedge every trade we do at the same time we final the deals with the counter party, except for arms

 

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