average maturity

USAGE SUMMARY

The phrase "average maturity" is correct and usable in written English.
It is typically used in financial contexts to refer to the average time until a bond or other financial instrument matures. Example: "The average maturity of the bonds in the portfolio is ten years, indicating a long-term investment strategy."

✓ Grammatically correct

News & Media

Formal & Business

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

The fund will not mature, with a return of your full principal, in 2007; rather, it will roll over maturing paper to maintain a constant weighted average maturity.

Forbes

The average maturity of the Government bonds will be over 34 years as opposed to the 7 to 8 year average maturity on the Promissory Notes.

The Guardian - Business

* Maintaining the average maturity of securities within the fund.

The New York Times

The weighted average maturity of the bond holdings is 5.66 years.

The New York Times

So the average maturity of government debt is now six years.

The New York Times

The average maturity for his $1.1 billion portfolio is down to two years.

The New York Times

The average maturity of federal debt was more than seven years in the 1940s.

The Economist

It would disclose their average maturity and the countries that issued them each month.

The New York Times

They have an expected average maturity, over all, of a little less than two years.

The New York Times

In comparison with sinking-fund bonds, serial bonds have a shorter average maturity.

Encyclopedia Britannica

One is to try to move the average maturity of the government debt back toward five years.

The New York Times

Expert writing Tips

Best practice

To calculate "average maturity" precisely, use a weighted average, considering the market value of each bond holding.

Common error

Don't assume that a fund's "average maturity" guarantees a return of principal at that time. Bond funds roll over maturing bonds, so the principal is not returned unless the fund is liquidated.

Linguistic Context

The phrase "average maturity" functions primarily as a noun phrase, often used as an adjective to describe financial instruments or portfolios. Ludwig AI confirms its grammatical correctness and common usage in financial contexts.

Expression frequency: Very common

Frequent in

News & Media

69%

Formal & Business

21%

Encyclopedias

3%

Less common in

Science

2%

Academia

0%

Wiki

0%

Ludwig's WRAP-UP

The term "average maturity" is a common and grammatically sound noun phrase predominantly used in financial contexts. Ludwig AI confirms its correctness and usability. It serves to indicate the average length of time until the principal of debt instruments becomes due, influencing interest rate sensitivity. Found frequently in News & Media and Formal & Business sources, understanding "average maturity" is vital for assessing portfolio risk. When using this term, remember that it reflects an average, not a guarantee of principal return at a specific date.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

mean duration

Replaces "average" with "mean", focusing on the statistical central tendency of the maturity period.

typical maturity

Substitutes "average" with "typical", suggesting the most common maturity length.

average term to maturity

Adds "term to" for clarity, specifying that it's the time until maturity that is being averaged.

weighted average maturity

Highlights the weighting of different maturities based on their size or importance in the portfolio.

average life

Uses "life" instead of "maturity", providing a more general term for the duration of an asset or liability.

average tenor

Replaces "maturity" with "tenor", which refers to the period remaining until repayment of a debt instrument.

average time to expiration

Emphasizes the time remaining until the expiration of a financial contract or instrument.

average repayment period

Focuses on the length of time over which a debt is repaid.

average duration until maturity

Combines "duration" and "maturity" for clarity, highlighting the time remaining until maturity is reached.

expected maturity

Suggests a predicted or anticipated maturity length, rather than a calculated average.

FAQs

How is "average maturity" used in finance?

In finance, "average maturity" refers to the average time until the principal of a debt instrument, such as a bond, becomes due. It's a key metric for assessing interest rate risk; longer maturities are more sensitive to rate changes.

What does a longer "average maturity" indicate for a bond fund?

A longer "average maturity" in a bond fund typically indicates a higher potential yield but also greater sensitivity to interest rate fluctuations. If rates rise, the fund's value may decline more significantly than a fund with a shorter maturity.

How do I find the "average maturity" of a bond fund?

The "average maturity" of a bond fund is usually disclosed in the fund's prospectus or on the fund's fact sheet, often available on the fund manager's website. Look for terms like "weighted average maturity" or "average term to maturity."

Is "average maturity" the same as duration?

While related, "average maturity" is not the same as duration. Duration is a more complex measure of interest rate sensitivity that considers factors like coupon payments, while "average maturity" simply looks at the time until principal repayment. Duration is generally a more accurate indicator of a bond's price sensitivity to interest rate changes.