LDI CF matching

Why doesn’t CF Matching apply to both single and multiple liabilities? For single liabilities, you can use zero-coupon bonds to achieve perfect immunization (zero replication). For multiple liabilities, you can use zero-coupon bonds to match CFs as closely as possible, though not perfect (i.e. CF matching).

So what’s the nuance here? Why doesn’t CF Matching apply to single liabilities as well since it appears the same conceptually?

@S2000magician, any idea on this one?

There’s nothing to cash flow matching a single liability. Maybe they thought that it was sufficiently uninteresting.

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