a short maturity

USAGE SUMMARY

The phrase "a short maturity" is correct and usable in written English.
It can be used in financial contexts to describe an investment or loan that has a brief duration before it is due for repayment or expiration. Example: "Investors often prefer bonds with a short maturity to minimize interest rate risk."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

4 human-written examples

He said it was not clear whether all of Greece's creditors would be willing to switch bonds with a short maturity bonds into issues stretching out as far as 30 years, given the huge loss of value that it implied.

The New York Times

Weighted average maturity captures some of the interest risk in a bond fund; a bond with a long maturity tends to be riskier than one with a short maturity.

Forbes

The reason for this, for a short maturity ((T<3)), the SCP provides the correlations which are still closed to the initial correlation (rho_{0}=0.3), which is larger than the constant correlation (rho=0.025).

Journal of Mathematics in Industry

The experiment results show that (i) an increasing risk probability of cash flow or a short maturity date also make the return rate of securities increase and (ii) the return rate of securities is higher in economic boom than that in economic recession when other parameters remain unchanged.

Physica A: Statistical Mechanics and its Applications

Human-verified similar examples from authoritative sources

Similar Expressions

55 human-written examples

Because these bonds have a shorter maturity, it is easier to calculate when they will be repaid, Mr. Gundlach said.

The New York Times

Second, a discount bond demanding a sizable reduction in investors' principal but carrying a higher interest rate and a shorter maturity.

The New York Times

For example, Paligorova and Santos (2017) show that banks that rely more on wholesale funding than on insured deposits have a shorter maturity of loans and that longer maturity loans are more expensive.

Swiss Journal of Economics and Statistics

Nonetheless, if that predicted crash arrives, you will wish you were in a short-maturity fund.

Forbes

If this incremental risk bothers you but you still want the convenience and liquidity of a fund, go for a shorter-maturity portfolio, maybe three years.

Forbes

He thinks their credit quality is solid, they have an attractive yield and a relatively short maturity.

The New York Times

Usually with a fairly short maturity, EBs offer rates of interest anywhere between 5% and 40%.

The Economist

Expert writing Tips

Best practice

When discussing financial instruments, use "a short maturity" to emphasize the benefit of quicker access to funds or reduced exposure to long-term market risks.

Common error

Avoid using "a short maturity" when you actually mean a low yield. Maturity refers to the length of time until the principal is repaid, while yield is the return on investment. Using them interchangeably can mislead your audience.

Linguistic Context

The phrase "a short maturity" functions as an adjective phrase modifying the noun "maturity". It describes the length of time until a financial instrument, such as a bond or loan, becomes due. Ludwig AI confirms the phrase is usable in written English, typically within financial contexts.

Expression frequency: Rare

Frequent in

News & Media

50%

Science

50%

Formal & Business

0%

Less common in

Encyclopedias

0%

Wiki

0%

Social Media

0%

Ludwig's WRAP-UP

In summary, "a short maturity" is a grammatically correct phrase used to describe a financial instrument's quick repayment timeframe. Ludwig indicates its usability, particularly in financial contexts. While relatively infrequent overall, this phrase is useful when discussing the reduced risk and quicker access to funds associated with investments like short-term bonds. Remember to use this term specifically when referring to the time until repayment, and not to be confused with the yield or return on investment. Alternatives like "brief term" or "limited duration" can provide similar meaning depending on the context. Understanding the implications of "a short maturity" is crucial for informed financial decision-making.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

short-dated

A concise way of saying having a short time to maturity.

brief term

Focuses on the limited duration of the period.

limited duration

Emphasizes the restricted timeframe.

near-term horizon

Highlights the proximity of the maturity date.

quick turnaround

Suggests a fast cycle from start to finish.

accelerated repayment schedule

Implies a faster rate of paying back a debt.

expedited expiration

Focuses on the rapid ending of a term.

reduced payback period

Highlights a shorter timeframe for debt repayment.

rapid amortization

Emphasizes the fast reduction of a debt over time.

limited lifespan

Indicates a concise existence.

FAQs

What does "a short maturity" mean in finance?

In finance, "a short maturity" refers to a financial instrument like a bond or loan that will be repaid in a relatively short period, typically less than five years.

Why might an investor prefer assets with "a short maturity"?

Investors might prefer assets with "a short maturity" to reduce exposure to interest rate risk and to have more immediate access to their capital. It can be an alternative of assets with "long maturity".

What are some examples of investments with "a short maturity"?

Examples of investments with "a short maturity" include short-term bonds, Treasury bills, and some money market instruments.

How does "a short maturity" affect the yield of a bond?

Generally, bonds with "a short maturity" have lower yields compared to those with longer maturities because investors demand a higher return for tying up their money for a longer period. However, this depends on the current market conditions and yield curve.