Maturity
maturity - the length of time that a loan or a bond exists, when this time ends the money must be repaid, the redemption date
maturity mismatch - when the maturities of assets and the liabilities used to fund them are different, as they typically are in a bank
three and six month maturities
these bonds have maturities of up to 2024
bonds with maturities of 20 years
the majority of maturities range from seven days to six months
longer- and shorter-dated maturities.
match the maturity of their assets and liabilities more profitably
necessary to match maturities of assets and liabilities with great precision
bills with maturities of three and six months
maturities of CDs are generally between one and three months
of differing maturities
short maturities
banks are active in demanding bonds with short maturities
financial intermediaries are thus involved in a process known as maturity transformation whereby deposits generally have a shorter term than have their loans
yield to maturity
the yield to maturity yield curve
yield to maturity spread
an increase in yields at all maturities
competitive interest rates for varying maturities
held to maturity
keep securities until they reach maturity
on maturity
on maturity, the holder receives the par value of the bill
receive a payout of $20000 on maturity
paid off more than $5 billion of maturities this year
paid on maturity
term to maturity
yield can vary quite considerably with coupon for the same term to maturity
maturity dates
extend the maturity dates of the notes
maturities vary but they tend to be longer than those for conventional bonds
commissions depend on maturities and the quality of the issuer
deregulating the international French franc bond market, relaxing listing and authorisation requirements, reducing minimum maturities
trading in maturities
unpredictable shifts towards shorter maturities in future
if government borrowing were skewed towards shorter maturities...
arbitrage is riskier for longer maturities
there are up to seven outstanding maturities at any one time
banks tend to hold bills and bonds of varying maturities and yields
Example sentences:
* The index-linked gilts on the market have maturities of up to 2024 and most of them stand at a substantial premium to their par value.
* This is known as trading in maturities, but, however, it does involve an element of risk for a bank.
* The Interbank market : Most banks deposit and borrow funds in this market at competitive interest rates for varying maturities (the majority range from seven days to six months).
* Banks find that this introduces instability; it is therefore necessary to match maturities of assets and liabilities with great precision.
* Because of the need for both liquidity and profitability, banks tend to hold bills and bonds of varying maturities and yields.
* Because there are up to seven outstanding maturities at any one time, the total number of observations was over 2000.
* The price at which CDs are traded is a reflection of their maturity value plus accrued interest.
* This enables them to manage their liabilities more effectively, and to match the maturity of their assets and liabilities more profitably.
* On maturity, the holder receives the par value of the bill by presenting it to the Bank of England.
* The yield to maturity is equivalent to the money-weighted rate of return or the internal rate of return on the bond.
* However, the two yields to maturity are not then comparable directly.
* It is clear that yield can vary quite considerably with coupon for the same term to maturity, and with term to maturity for different coupons.
* The company has paid off more than $5 billion of maturities this year.
* They plan to extend the maturity dates of the notes by as much as three years.
* The public sector borrowing requirement can affect the level of the yield curve: an increase in the requirement can lead to an increase in yields at all maturities.
* The Bank of England is happy to respond to market demand and issues stocks across a wide range of maturities.
* Most financial intermediaries are thus involved in a process known as maturity transformation whereby deposits generally have a shorter term than have their loans.
* Investors will receive a payout of $20000 on maturity.
* Maturities vary but they tend to be longer than those for conventional stocks; only three of the 13 stocks outstanding at end-September, 1991 had maturity dates before the end of the century and several still had terms to maturity in excess of 20 years.
* Many investors keep securities until they reach maturity.
* Commissions in the eurodollar market as a whole (not illustrated) obviously depend on maturities and the quality of the issuer, but similar trends in fees are observable.
* For example, the French have been steadily deregulating the international French franc bond market, relaxing listing and authorisation requirements, reducing minimum maturities and allowing French subsidiaries of foreign banks to lead issues.
* The yield to maturity on the active-issues index of Donaldson, Lufkin & Jenrette, a Wall Street brokerage, fell below 19% last month for the first time since September.
* They plan to extend the maturity of the loan for another year.
* The company announced that they could meet its debt maturities.
* Thus, the hypothesis of a positive association between volatility and volume was supported, even when the effects of maturity and weekends were removed.
* The yield to maturity spread is defined as Yield to maturity spread = rmf - rmb. (5.65)
* By how much will the price change if the yield to maturity falls to 9.5 per cent?
* Does this make the Treasury bill unsaleable, and therefore have to be held to maturity by the current holder?
* Equally, with the use of appropriate figures, it would show that CDs become more liquid, the nearer they get to maturity, i.e. the nearer to maturity they get, the smaller is the loss or gain as a result of changes in prevailing yields.
* If political imperatives dictate further and unpredictable shifts towards shorter maturities in future, the result will be to disrupt all the different credit markets (in interest-rate derivatives, corporate debt and mortgage-backed securities, for example) that have grown up around the Treasury's vast borrowing schedule.
* If government borrowing were skewed towards shorter maturities, such risks might conceivably, at some future date, cause investors to shun short-term Treasuries and precipitate a funding crisis for the government.
* The proportionate mispricings for the next near contract were larger than those for the near contract, which is consistent with arbitrage being riskier for longer maturities.
* Money market securities are securities with maturities of less than a year.
* Commercial paper (CP) refers to unsecured promissory notes issued by large corporations with maturities of between one day and a year.
* For example, banks are active in demanding bonds with short maturities, pension funds are active in demanding bonds with long maturities, while few institutions are greatly interested in medium maturity bonds.
* Bonds are capital market securities and as such have maturities in excess of one year, unlike money market securities discussed in the last chapter which have maturities of less than a year.
* This contrasts with capital market securities, which have maturities in excess of one year.
* Three- and six-month maturities are common.
* It is quite common for a bank both to have issued and to hold CDs, though normally of differing maturities.
* Bills are issued with maturities of three and six months.
* Maturities range more widely than those of sterling inter-bank loans, from overnight to one year and occasionally more.
* The range of maturities is wider, however, ranging from three months to five years.
* The maturities of CDs are generally between one and three months, although some CDs have maturities in excess of one year (e.g. five years).
* In this section we shall examine the relationship between some of those yield measures and bonds which have different maturities but are otherwise similar.
