Cash Flow Matching Strategy for ABC Corporation

ABC Corporation is a multinational firm that is restructuring its liabilities due to anticipated short-term financing challenges in the next five years. The firm has a series of cash outflows that include bond principal repayments, coupon payments, and operational expenses totaling $15 million due at the end of each fiscal year for the next five years. ABC's CFO has proposed a cash flow matching strategy to ensure that the company can meet these obligations without incurring additional costs or relying on new financing sources.

The firm currently holds a bond portfolio valued at $90 million, composed of various fixed-income securities with maturities and coupon structures that do not align with the cash outflow timeline.

Discuss the cash flow matching strategy that ABC Corporation should implement. Your essay should include an analysis of the method, potential securities to be included in the cash flow matching portfolio, and any risks associated with this strategy. Additionally, elaborate on the importance of ongoing monitoring and adjustments to the portfolio to ensure continued alignment with liabilities.