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.

• participator
• partly paid shares
• partnership
• partnership agreement
• par value
• passing a name
• passing off
• passing the book
• passive management
• pass-through
• past-due loan
• pataca
• patent
• Patent Office
• path-dependent option
• pathfinder prospectus
• pawnbroker
• payable to bearer
• payable to order
• pay and file
• pay-as-you-earn
• payback period
• payback period method
• PAYE
• payee