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Weighted average maturity |
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Definition of Weighted average maturityWeighted average maturityThe WAM of a MBS is the weighted average of the remaining terms to maturity
Related Terms:Weighted average remaining maturityThe average remaining term of the mortgages underlying a MBS. Arithmetic average (mean) rate of returnArithmetic mean return. AverageAn arithmetic mean of selected stocks intended to represent the behavior of the market or some Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average (across-day) measuresAn estimation of price that uses the average or representative price of a Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection Periodaverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average cost of capitalA firm's required payout to the bondholders and to the stockholders expressed as a Average inventoryThe beginning inventory for a period, plus the amount at the end of Average lifeAlso referred to as the weighted-average life (WAL). The average number of years that each Average maturityThe average time to maturity of securities held by a mutual fund. Changes in interest rates Average Propensity to ConsumeRatio of consumption to disposable income. See also marginal propensity to consume. Average Propensity to SaveRatio of saving to disposable income. See also marginal propensity to save. Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Average tax rateTaxes as a fraction of income; total taxes divided by total taxable income. average tax rateTotal taxes owed divided by total income. Balloon maturityAny large principal payment due at maturity for a bond or loan with or without a a sinking Current maturityCurrent time to maturity on an outstanding debt instrument. Dollar-weighted rate of returnAlso called the internal rate of return, the interest rate that will make the Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Dow Jones Industrial AverageIndex of the investment performance of a portfolio of 30 “blue-chip” stocks. Held-to-Maturity SecurityA debt security for which the investing entity has both the positive Market value-weighted indexAn index of a group of securities computed by calculating a weighted average MaturityFor a bond, the date on which the principal is required to be repaid. In an interest rate swap, the MaturityThe date or the number of days until a security is due to be paid or MaturityTime at which a bond can be redeemed for its face value. MaturityThe time when a policy or annuity reaches the end of its span. Maturity dateThe date when the issuer returns the final face value of a bond Maturity DateDate on which a debt is due for payment. Maturity factoringFactoring arrangement that provides collection and insurance of accounts receivable. Maturity phaseA phase of company development in which earnings continue to grow at the rate of the maturity premiumExtra average return from investing in longversus short-term Treasury securities. Maturity spreadThe spread between any two maturity sectors of the bond market. Maturity valueRelated: par value. Moving averageUsed in charts and technical analysis, the average of security or commodity prices Moving averageA price average that is adjusted by adding other Moving average inventory methodAn inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase. Moving-averages chartA financial chart that plots leading and lagging Original maturitymaturity at issue. For example, a five year note has an original maturity of 5 years; one Projected maturity dateWith CMOs, final payment at the end of the estimated cash flow window. Remaining maturityThe length of time remaining until a bond's maturity. Return-to-maturity expectationsA variant of pure expectations theory which suggests that the return that an Simple moving averageThe mean, calculated at any time over a past period of fixed length. Stated maturityFor the CMO tranche, the date the last payment would occur at zero CPR. Term to maturityThe time remaining on a bond's life, or the date on which the debt will cease to exist and Term to MaturityPeriod of time from the present to the redemption date of a bond. Time to maturityThe time remaining until a financial contract expires. Also called time until expiration. Time-weighted rate of returnRelated: Geometric mean return. WEIGHTED AVERAGEAn inventory valuation method that calculates a weighted average cost per unit for all the goods available for sale. Weighted averageA method of accounting for inventory. Weighted average cost of capitalExpected return on a portfolio of all the firm's securities. Used as a hurdle Weighted average cost of capitalSee cost of capital. weighted-average cost of capitalweighted means that the proportions of weighted average cost of capitala composite of the cost of the various sources of funds that comprise a firm’s capital structure; the minimum rate of return that must be earned on new investments so as not to dilute shareholder value Weighted Average Cost of Capital (WACC)The weighted average of the costs of the capital components weighted-average cost of capital (WACC)Expected rate of return on a portfolio of all the firm’s securities, adjusted for tax savings due to interest payments. Weighted Average Cost of Capital (WACC)A weighted average of the component costs of debt, preferred shares, and common equity. Also called the composite cost of capital. Weighted average couponThe weighted average of the gross interest rate of the mortgages underlying the Weighted average lifeSee:average life. weighted average method (of process costing)the method of cost assignment that computes an average cost per Weighted average portfolio yieldThe weighted average of the yield of all the bonds in a portfolio. Yield to maturityThe percentage rate of return paid on a bond, note or other fixed income security if you Yield to MaturityThe measure of the average rate of return that will be earned on a Yield to maturityA measure of the average rate of return that will be earned yield to maturityInterest rate for which the present value of the bond’s payments equals the price. DurationThe weighted average of the time until maturity of each of the Macaulay durationThe weighted-average term to maturity of the cash flows from the bond, where the Macaulay durationA widely used measure of price sensitivity to yield
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