- Maturity mismatch often refers to situations where a company’s short-term liabilities exceed its short-term assets.
- Maturity mismatches are visible on a company’s balance sheet and can shed light on its liquidity.
- Mismatched maturities are often indicative of a company’s inefficient use of its assets.
- Maturity mismatches can also occur when the maturities of the hedging instrument and the underlying asset do not match.