Fixed income asset allocation

Cash flow matching vs multiple liability immunization:

cash flow matching involves investing in bonds that will provide cash inflows that exactly match the outflows required for the liability
whereas
in multiple liability immunization you are not necessarily trying to match all cash flows, you want the average duration of the portfolio to match the average duration of your liabilities and the present value of the assets to match the present value of the liabilities, while ensuring that the range of the asset durations are greater than that for the liabilities

Disadv:

Cash flow matching depends upon all the cash flows of the portfolio, so expectations regarding short term reinvestment rates are critical. For this reason, managers must use conservative reinvestment assumptions for all cash flows
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Combination matching: try to do cash matching in early years and duration matching in later years

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Portfolio rebalancing:
after change in duration and value of portfolio, bring
rebalancing ratio = (old dd/new dd) = (target asset value)/current asset value