The term
"average maturity" refers to the average length of time it takes for something to reach its maturity or completion. It is commonly used in finance and investments to describe the average time it will take for a collection of financial instruments, such as bonds or loans, to reach their full term or expire.
Full definition
The remaining investments can be in longer - term issues, provided the overall weighted
average maturity of the fund is 60 days or less.
Look
at average maturity to check whether the fund has exposure to low or high maturity investments.
Foreign currency loan raised by an Indian entity for financing infrastructure project, provided that the
minimum average maturity of loan is not less than three years.
The market value - weighted
average maturity of the bonds and loans in a portfolio, where maturity is defined as the stated final for bullet maturity bonds and loans.
As a result, you will always have something maturing, and you'll enjoy the yield of a longer maturity obligation while having a
shorter average maturity.
National muni bond categories are: B - MNST - Short - Term National Muni Bond: Invest in muni bonds
with average maturity of less than three years.
These funds can not «roll down the curve», or capture the duration risk premium
as average maturities decline with time.
«Vanguard Core Bond Fund will share many characteristics with Vanguard Total Bond Market Index Fund, including low - cost exposure to high - quality bonds, broad diversification, and an intermediate -
term average maturity.
In response, institutional money fund portfolio managers have
shortened average maturities to decrease the likelihood of even a small paper loss.
At yearend Berkshire held $ 116.0 billion in cash and U.S. Treasury Bills (
whose average maturity was 88 days), up from $ 86.4 billion at yearend 2016.
Read the prospectus for your fund and it will have the average duration as well as information about the issuers of the bonds it does invest in (govt, agency, mortgage backed, foreign, high quality corporate, etc) and whether there are constraints on the
target average maturity.
However, with a bond fund that has a
constant average maturity of five years you will receive interest payments based on the average of the fund's rates but as you get closer to your five year goal, the fund not necessarily be getting less risky.
«So for bond funds that maintain consistent
average maturity versus the index they're tracking, they have to sell bonds that appreciated in value.»
Not only does the Canada Deposit Insurance Corporation (CDIC) insure GICs within specified limits, many GICs have yields that rival those of your favourite bond ETFs, with a much
lower average maturity.
As the CBO has projected huge deficits PLUS huge debt roll - overs (
average maturity down from 7 years to 4 years) up to at least 2019, do you think we could extend the» printing» by foreign central banks — CB's» buying» each others debt — for at least 10 more years?
The downside risk for the biotech fund particularly short - term ones, could produce significant capital gains or losses — primarily for long - term bond funds
with average maturities of bonds in the portfolio over 10 years.
Has anyone prepared a summary of US Treasury bonds, say five years ago and now and looked
at average maturity, etc..
Commercial paper markets are a cheap source of financing but while it may be cost - efficient, the downside is the very short -
term average maturity, which is approximately 50 - 55 days in Europe, bankers said.
Clearly, actual holding periods, particularly short - term ones, could produce significant capital gains or losses — primarily for long - term bond funds with
average maturities of bonds in the portfolio over 10 years.
This index measures a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States — including government, corporate, and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities, all with maturities of more than 1 year... The fund maintains a dollar - weighted
average maturity consistent with that of the index, which currently ranges between 5 and 10 years.
The SIFMA Municipal Swap Index rate (an index of 7 -
day average maturity) spiked significantly from 44 basis points to 87 basis points as of October 5.
Borrowing in foreign exchange by an exporter / foreign exchange earner upto three times of the average amount of his annual foreign exchange earnings during the previous three years subject to a maximum of US$ Ten million or its equivalent, with a
minimum average maturity of three years.
In general, it is a better measure than
average maturity for bonds that have the ability to prepay principal before they reach maturity (e.g., mortgages, mortgage - backed securities and asset - backed securities).
As older bonds mature, newer bonds are purchased and the portfolio manager of the fund generally tries to keep
the average maturity in the range that is stated in the fund's objective.
That means looking at the fund's objective,
average maturity, credit quality, yield and the composition of the holdings by bond type.
The average maturity of the fund is 7.3 years but over 50 % is less than 5 years while 15 % or so of the fund is greater than 10 years.
For bonds and CDs, scan summary calculations for total market value, total par value, average price,
average maturity - years, average estimated yield, annual interest income, and average coupon rate.
A bond fund with a longer
average maturity will see its net asset value (NAV) react more dramatically to changes in interest rates as the prices of the underlying bonds in the portfolio increase or decline.
The increased use of cross-currency basis swaps is attributable to the banking sector and is consistent with a lengthening in
the average maturity of banks» new offshore wholesale funding over the 2009 — 2013 period.
TLH's weighted
average maturity is about half of our benchmark.
Phrases with «average maturity»