intermediate bond

(redirected from Intermediate-Term Bonds)

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 ?
Exposure to intermediate-term bonds rose to 11%, or about 36% of the typical bond portfolio, in the expectation that interest rates would remain low.
Shifting the bond allocation to long bonds would increase the risk of such a large loss to 39%, because long-term bonds lose more value than intermediate-term bonds when interest rates rise.
Most of this went into long- and intermediate-term bonds.
Many advisers generally recommend short- to intermediate-term bonds or bond funds so the portfolio doesn't sustain too much damage if interest rates rise.
According to a study by Ibbotson Associates, an investor starting in 1972 to withdraw at a rate of 9% a year from a portfolio of 60% large-company stocks and 40% intermediate-term bonds would have gone broke in 1981.
Remember the basic rule of thumb: if you are going to need the money in the short term (to pay upcoming college tuition, for example), consider investments such as short-term Treasuries, intermediate-term bonds and cash equivalents like CDs and money market accounts.
For intermediate-term bonds (typically two-year to 10-year maturities), the interest rate is normally higher than a shorter-term bond and lower than a long-term bond.
The Tedfords' fixed income performance tract record in intermediate-term bonds -- those maturing in one to 10 years -- was ranked third in the Piper Domestic Intermediate Duration Managed Fixed Income performance evaluation report over the past five years.
These debt obligations are offered by the same institutions that offer intermediate-term bonds but have more than 10 years until maturity.
Also look for pre-funded municipals, short- to intermediate-term bonds backed by Treasury securities.

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