average maturity

(redirected from Average Maturities)

Average maturity

The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average maturity.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Average Maturity

In a mutual fund containing debt securities, the average amount of time until the debt securities mature. It is calculated by adding together the total amount of time until maturity and dividing by the number of debt securities in the mutual fund. The shorter the average maturity is, the less the fund's share price will fluctuate with changes in interest rates. See also: Weighted average maturity.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

average maturity

The average time to maturity of all the debt securities held in a portfolio. A relatively short average maturity results in smaller price fluctuations in response to changes in market rates of interest. A short average maturity subjects the owner of a debt portfolio to the risk that maturing debt will be replaced with debt carrying a lower interest rate. Average maturity is an important consideration for investors who hold bond and money market funds.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Mentioned in ?
References in periodicals archive ?
The reviewed MMFs seek to limit interest rate and spread risk by maintaining their weighted average maturities (WAM) and weighted average lives (WAL) below 60 days and 120 days, respectively.
Fitch Ratings affirms ratings of MMFs at 'AAAmmf'
Lease outs this year have been at attractive cash-on-cash yields with average maturities approaching 7 years," the company said.
Textainer sees "further growth and continued improvement" in performance
The issuance of three perpetual bonds during the year reflected the attractiveness of current low rates and helped extend average maturities of NFS debt, which rose to 8.9 years.
GCC outstanding debt securities hit $257bn in 2013
The ministers already concluded a political agreement, on 12 April, to increase the average maturities for both countries from 12.5 to 19.5 years.
EUROZONE : COUNCIL CONFIRMS SEVEN-YEAR LOAN EXTENSION FOR DUBLIN AND LISBON
The facility will provide significant additional liquidity during the scheduled construction period of Gladstone LNG (GLNG) project and Papua New Guinea LNG (PNG LNG) project, and delivers average maturities beyond first LNG production from the two projects, said Santos Executive Vice President and Chief Financial Officer Peter Wasow.
Santos (ASX:STO) Executes A$2B New Bank Facility
Average maturities for money funds came down last fall, although perhaps not as sharply as some would have expected, after the industry was shaken by a fund that failed to keep its dollar par value.
Everything ventured, nothing gained in money funds
Acquisitive companies or those requiring cash to meet burn rates or capital expenditures typically specify short maximum and weighted average maturities and greater amounts of liquidity.
The investment policy: Sarbanes-Oxley 'first line of defense'; A properly structured investment policy serves as a roadmap for pursuing a company's investment objectives. But, often these documents contain vague and contradictory language and do not reflect current risk tolerance and liquidity requirements. A cash management expert provides insights on updating your investment policy
Ultra-short bond funds currently have average maturities of 2.5 years, according to Morningstar Inc., the mutual fundtracking company in Chicago, and average yields of 6.6%.
A `short cut' to higher yields

Financial browser ?
Full browser ?