Maturity

(redirected from Coming Due)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

Maturity

For a bond, the date on which the principal is required to be repaid. In an interest rate swap, the date that the swap stops accruing interest.

Maturity

The time when the issuer of a bond or other debt security must repay the principal or when a borrower must repay a loan in full. For example, if a company issues $1 million in bonds with a maturity of 10 years, the company must repay $1 million to bondholders 10 years after the issue. The amount owed at maturity is usually the same as the debt or loan's face value. After maturity, the loan or debt ceases to exist, assuming all parties have fulfilled their obligations. See also: Expiration.

maturity

The date on which payment of a financial obligation is due. In the case of a bond, the maturity date is the one on which the issuer must retire the bond by paying the face value of the bond to its owners. Shares of stock do not have specific maturity dates.
Case Study In late 1995, BellSouth became only the fifth company in 40 years to issue bonds with 100-year maturities. The AAA-rated bonds carried a 7% coupon that was 70 basis points higher than 30-year Treasury bonds yielded when the BellSouth bonds were priced. Because it is impossible to know what the next 100 years will bring, bonds with such long maturities subject investors to substantial risk. Renewed inflation, for example, could undermine the purchasing power of the interest payments a bondholder received. Likewise, competition in the communications industry might shake the financial stability of a company long protected by regulation. In addition, changes in market rates of interest have a significant impact on the price of bonds with long maturities. On the plus side though, this BellSouth bond presented investors with a chance to lock in for a long period what at the time appeared to be an attractive yield. If inflation and interest rates remain low for decades, the bonds could turn out to be a profitable investment.

maturity

The date on which the remaining balance of a promissory note is due.

Maturity

The period until the last payment is due.

The maturity is usually but not always the same as the period used to calculate the mortgage payment. See Term.

References in periodicals archive ?
With the restatement and delayed filings behind DRL, the biggest challenge over the near-term is the refinancing of $625 million of unsecured debt coming due in July 2007.
With Clear Choice Financial having completed the acquisitions of Bay Capital and Allstate Home Loans, we now have the platform to grow our business to meet the demand of the over $1 Trillion worth of loans coming due over the next 18 months.
Best's analysis also contemplates a temporary modest increase in Torchmark's leverage for re-funding of maturing and callable debt coming due in the later part of 2006.
While the financial press has warned of the large amount of bullet loans coming due, we have not witnessed an excessive demand from this type of borrower.
We expect that a number of traditional and non-recourse premium finance loans that were administered over the past 10 years will be coming due in the near future," said Tom Yaeger, Executive Vice President of A.
The cooperative was being stifled by debt and faced the distinct possibility of not being able to rollover its existing mortgages as they were coming due," Howe said.
This is a great opportunity for customers to save now on support licenses they know are coming due for renewal anytime this year," says Mike Teague, SAFER Systems Manager, Sales & Marketing, "and new customers can enjoy anniversary savings on software packages
9 years on its entire pool of debt which includes the pro rata share of debt held within its joint ventures and no more than 15% coming due in any year except 2007, when two of AMB's credit facilities expire.
In addition, the company potentially has up to $717 million in maturities coming due in 2007.