Cash Flow Matching Strategy in Fixed Income Portfolio Management

XYZ Corp is a large multinational corporation with substantial future cash obligations, including $10 million due in 5 years and another $15 million due in 10 years. The company's chief financial officer is concerned about ensuring these obligations are met without exposing the company to significant interest rate risk or liquidity problems.

XYZ Corp has a fixed income portfolio currently invested in a mix of corporate bonds and government securities. The CFO is considering adopting a liability-driven investment (LDI) strategy using cash flow matching to meet these obligations. In this context, describe the cash flow matching strategy in detail. Discuss the potential advantages and disadvantages of implementing this strategy, particularly regarding interest rate risk, liquidity risk, and the overall portfolio composition.