These involve managing the relationship between a firm's short-term assets and its short-term liabilities.

Therefore, during periods of market illiquidity, they could go bankrupt if unable to refinance their short-term liabilities.

Others must tidy their portfolios, exchanging short-term liabilities for long-term debt that is less subject to speculative meltdown.

Converting short-term liabilities to long term assets (banks deal with large number of lenders and borrowers, and reconcile their conflicting needs)

Maintaining a balance between short-term assets and short-term liabilities is critical.

It shows the number of times short-term liabilities are covered by cash.

Through setting up ABCP conduits, banks can fund assets all by short-term liabilities.

What is important here is whether the debts are financed mainly by the country itself or whether short-term or longer-term liabilities are involved.

As another example, a bank could have substantial long-term assets (such as fixed-rate mortgages) but short-term liabilities, such as deposits.

"Venezuela, he said, "may be safer than many think, as its short-term liabilities are greatly exceeded by its assets, both official and private.