Average effective maturity

average effective maturity A measure of a bond's maturity which takes into consideration the possibility... average equity Average daily balance in a brokerage account. Brokerages use this amount to calculate their mark-to-market.

The average weighted maturity is also called an average effective maturity. To determine the average weighted maturity you would calculate the average mortgage value by dividing it into the total of all mortgages in the fund.

Ultrashort bonds have an average duration or an average effective maturity of less than one year. These funds specifically exclude investment in international, convertible, multi-sector, and high-yield bonds.

weighted average of the time until all maturities on mortgages in a mortgage-backed security (MBS). The higher the weighted average to maturity, the longer the mortgages in the security have until maturity. Also known as "average effective maturity".

See also: Maturity, Bonds, Average, Investing, Vesting