Weighted average maturity

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Revision as of 16:38, 7 June 2013 by imported>Modonovan (Clarification that it is the rate fixing periods' maturities)
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(WAM). The average maturity of securities held in a fixed income or money market fund. WAM is calculated by taking the maturity of the fixed rate periods (rather than the final maturities) of the underlying instruments held by the fund, weighted according to the relative holdings per instrument.This is used to measure interest rate risk.

Also known as Average weighted maturity.

See also

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