| mismatch 1) Any position that is not perfectly offset. 2) A floating-rate note in which the coupon is paid monthly but the interest rate paid is that applicable to a note of longer maturity. 3) The state of the typical books of a bank that borrows short-term and lends long-term, creating a condition in which assets and liabilities are not matched. This is usually acceptable as long as deposits keep coming in. See: asset-liability management, gap, maturity mismatch risk. |