ELI5: Explain Like I'm 5

Asset/liability modeling

Asset/liability modeling is like playing a game. You have two teams, the Asset team and the Liability team. The Asset team is trying to make money with the money it has and the Liability team is trying to make sure it doesn't lose money. In order to do this, the teams make plans to make sure they get the money they need and keep the money they have. Asset/liability modeling is looking at the amount of money each team has, the plans they make, and how they can make sure that they both don't lose money.
Related topics others have asked about: