Maturity Profile Interest rate risk is contained with the portfolio's weighted average maturity
(WAM) kept below 90 days, in line with Fitch criteria for 'AAAmmf(mar)' rated funds.
his was driven by the corporate sector which saw 13 issuance at longer maturities than usual, which pushed the weighted average maturity
of outstanding corporate debt up by 0.6 to 8.5 years, the report added.
Reliance on short-term unsecured funding is minimal and Morgan Stanley has lengthened out the weighted average maturity
of its secured funding.
They are required to invest primarily in the highest rated debt and maintain a weighted average maturity
of 60 days or less.
Ben Campbell, president and CEO of Capital Advisors Group, says the SEC's Rule 2a-7 effectively reduces the weighted average maturity
of money fund investments to 60 days, and in practice maturities are now under 50 days.
Ben Campbell, president and CEO of Capital Advisors Group, notes that the SEC's Rule 2a-7 effectively reduces the weighted average maturity
of money fund investments to 60 days, and in practice funds' maturities are now under 50.
Furthermore, the company managed to successfully refinance a five year, $372,060,000 syndicated bank facility in April 2012, extending the weighted average maturity
of the Group's debt facilities to 5.3 years.
The portfolio includes insurance on over 500 state and municipal debt issuers and had a weighted average maturity
of 8.8 years as of the end of June, the company said.
Dennis Craven, the trust chief financial officer, said, 'This is the eighth individual property loan for our portfolio, giving us combined borrowings from such loans of approximately USD162 million at a weighted average rate of 5.97 percent and a weighted average maturity
The central bank said that a bank can invest up to 10% of their previous year's net worth in "liquid/short term debt schemes (by whatever name called) of mutual funds with weighted average maturity
of portfolio of not more than one year." Not to disturb the fund industry, RBI said that banks which had more than 10% of their net worth invested in these schemes, are now "allowed to comply with this requirement at the earliest but not later than six months" from the date of notification.
The fund seeks to limit its interest rate exposure and spread risk by limiting its weighted average maturity
to reset date (WAMr) and weighted average final maturity (WAMf) to 60 days and 120 days, respectively, consistent with Fitch's 'AAAmmf' rating criteria.
The weighted average rate lowered at 11% (-1.41) and weighted average maturity
remained unchanged at 10 months.