intermediate bond

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Intermediate Bond

A debt security with a maturity in the medium-term. While there is no set definition of what constitutes the medium-term, it is generally accepted that intermediate bonds are those that mature somewhere between one and 15 years. One of the most common intermediate bonds, the U.S. Treasury Note, usually has a maturity of 10 years. Intermediate bonds have become increasingly popular for what were formerly called long-term investors. This is especially true among Treasury securities; Treasury Notes have increasingly replaced Treasury Bonds as benchmarks of the bond market.

intermediate bond

A debt security with a maturity of 7 to 15 years. Also called medium-term bond. See also long bond, short bond.
References in periodicals archive ?
For most clients investing in taxable accounts, sticking to high-quality short and intermediate bonds should, for a large portion of their fixed income portfolio, mitigate the effects of these occasional liquidity crises.
The Loomis portfolio is invested in intermediate bonds, which Riddix says could help absorb any bumps if interest rates rise, The Loomis fund's current 4.
Asset mix guidelines identify asset classes - such as large cap stocks, mid cap stocks, small cap stocks, international stocks, intermediate bonds, international bonds, and high yield bonds - approved for investments with the maximum and minimum range for each asset category.
For intermediate bonds, the standard deviation of returns was lowest in the 1960s (0.
Intermediate bonds are an investor's friend: They produce a hefty portion of the returns of long bonds with much less principal risk.
Therefore, intermediate bonds have both medium-term downside risk and very low risk premiums.
12 on the BE ASSET MANAGERS list with $428 million in assets under management), says investors should stick with intermediate bonds, which have a maturity of three to seven years, for the moment.
Intermediate Bonds You would think that with interest rates being so low, you'd want to invest in longer dated bonds because they'd pay more.
Some are counseling that intermediate bonds are not a good investment in today's market because interest rates have only one way to go -- up," he states.
He suggests that Thomas place some of his money into mutual funds that have intermediate bonds or corporate bonds for a mix that is 70% to 80% stocks and 20% to 30% bonds and cash.
3rd Quarter Commentary Municipal rates dropped slightly during the third quarter, with long and intermediate bonds turning in a 20 basis point and 10 basis point decline, respectively.

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