Horizon matching vs. multiple liability immunization

CFA Level III
#1

Why is horizon matching more costly than multiple liability immunization?

#2

Because with horizon matching you are buying actual bonds to fund the liabilities in the early years.

#3

It should be related to reinvestment rate assumption as well. Am I wrong?

#4

and just to clarify, the order of cheapest to most costly: Multiple Liability Immunization Horizon Matching Cash Flow Matching correct?

#5

? Contingnt Immunization Multiple Liability Immunization Horizon Matching Cash Flow Matching

#6

Horizon matching uses cash flow matching in the first few years and them immunization. The cash flow matching makes it costly.

#7

AnalyseThis Wrote: ------------------------------------------------------- > Horizon matching uses cash flow matching in the > first few years and them immunization. The cash > flow matching makes it costly. agreed

#8

key is cheaper refers to higher expected return