Average life

average life investment & finance definition
The average number of years before the principal of a debt or mortgage remains outstanding. Businesses calculate average life; individuals typically do not. Also called weighted-average life.

Average Life. Average life is the average time that each dollar of principal in the pool is expected to be outstanding, based on certain prepayment assumptions.

Average Life - (see Weighted Average Life)
Bond - In the case of Fannie Mae REMICS, an instrument representing the right to certain payments on the underlying collateral.

Average Life Features
A second feature investors should be aware of is a statement of "average life.

AVERAGE LIFE - With respect to an issue of bonds, the weighted period of time required to repay half of the issue through scheduled principal payments (e.g., maturity, sinking fund redemption, etc.).

Average life
Also referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding.

Average life:
The arithmetic weighted average life of a bond where the weights are the proportion of the principal amount being redeemed.
Average Rate Option: ...

Yield to Average Life
A yield calculation used where bonds are retired routinely during the life of the issue. The issuer will buy its own bonds on the open market because of sinking fund requirements.

Weighted Average Life - WAL
The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, WAL tells how many years it will take to pay half of the outstanding principal.

The Weighted-Average Life is the weighted average of the principal repayments of an amortizing loan, and is longer than the duration.
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[Harvey] average life (A) A factor in the pricing decisions by an underwriter, relating to the average of 12 calendar month periods of all the maturities of an issue, measured from the date of the issue.

It is the weighted average life of the present values of the cash flows that arise from a bond or financial instrument. It is measured in years.

They will not be wiped-out (remember, the average life of a retail futures account is six months).
They will benefit from the enforced trading-pauses (if any) to re-gain their mental equilibrium and refine their techniques.

FHA Experience - An estimate of the average life of a pool of mortgage-backed securities in relation to experience tables developed by the Federal Housing Administration.
Fiduciary - A person legally appointed in the P&S department.

The longevity risk is the good news/bad news that modern health care has extended the average life span, which is the good news part. The bad news part is that many of us may outlive our retirement plan.
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Definition
High-Risk Mortgage securities
Securities where the price or expected average life is highly sensitive to interest rate changes, as determined by the FFIEC policy statement on high-risk mortgage securities.
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Friedman estimates that 70% of the thrifts that converted to full stock ownership between 1990 and 2010 have been acquired, with an average life for post-conversion thrifts of just 3.7 years.

You can go back to living your average life in your 9-5 job and work for someone else for the rest of your life...
OR...

The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average life.
Average P/E Ratio
Average price/earnings ratio of stocks owned by a mutual fund.

Average maturity - The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average life.
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Going forward over 20 million will disappear from Japan's working population, leaving just over 50 million of working age, while the average life expectancy by 2060 will rise to 90.93 for Japanese women (versus 86.39 in 2010) and 84.

Assets Any possessions that has value in an exchange. Average Maturity The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average life.

average life The length of time that will pass before one-half of a debt obligation has been retired. average nominal maturity A measure of a bond's maturity which, unlike average effective maturity, does...

See also: Average, Life, Market, Investment, Interest