Asset-liability mismatch
Fundamental analysisAlso called: Maturity mismatch
Funding an asset that returns cash over years with a liability repayable in months, so the borrower must return to the market repeatedly before the asset has paid for itself.
In plain terms
It leaves solvency untouched and hands liquidity to somebody else to decide. A company can be worth far more than it owes on every valuation and still fail on a date.