Following recent debt buybacks, maturities
in 2019 and 2018 dropped below e1/41.4bn for each year, from a cumulative e1/44.5bn two years ago, the PDMO said.
Concurrent with the lengthening of maturities
on the asset side of the balance sheet at small banks there has been a shortening on the liabilities side (figure 5).
Bonds with 3, 5, 7 and 10 year maturities
sold a total of EGP 6bn, EGP 5.5bn, EGP 4bn, and EGP 1.25bn, respectively.
Now let us assume that there is a world of matched maturities
. (8) Lenders reduce consumption for a certain period of time, granting loans to investors who invest in projects expected to have the same duration to completion.
The asymmetric information theory suggests that both high- and low-rated issues should have shorter maturities
than intermediate rated issues.
Acquisitive companies or those requiring cash to meet burn rates or capital expenditures typically specify short maximum and weighted average maturities
and greater amounts of liquidity.
Second, firms can match the maturities
of their assets and liabilities to attenuate underinvestment problems, which suggests a negative relationship between asset maturity and short-term debt.
Every two years, he invests in bonds with maturities
ranging from two to 10 years.
Flannery (1986), Diamond (1991), and others provide intuitive models that rely on the volition of low-risk and high-risk firms with long-term projects choosing different maturities
to reduce their financing costs or liquidity risks.
In 1997, GFOA promulgated a recommended practice entitled "Maturities
of Investments in a Portfolio." Recognizing the inherent price volatility of longer maturities
and the liquidity needs that all governments face in their day-to-day operations, GFOA recommended an overall investment strategy for state and local governments that matches investment maturities
with anticipated cash flow requirements.
Some advisers say it's best to spread risk over a series of different maturities
while maintaining an average maturity of the client's liking in the portfolio.
The facts that seemed central to the Tax Court's conclusion were that loan maturities
were repeatedly extended, there were no repayments of principal and, by pre-arrangement, interest payments were in almost every case immediately relent by the Dutch company to the U.S.