In a world without fractional reserve banking, banks who want to mismatch maturities
, have to attract real short-term savings.
We limit the sample to nonconvertible, unsecured, public debt offerings with maturities
of at least one year, and we eliminate all observations where the issuing firm does not have a Moody's debt rating at the time of issue.
Whereas in mid-2002, high-yield debt paid over 10 percentage points more than Treasury bonds with similar maturities
, today that yield differential is just 3.5 percentage points.
In Test 1, we examine whether maturity is an upward-sloping function of the risk rating as predicted by Flannery's model versus a nonmonotonic function of the risk rating with the shortest maturities
for the lowest and highest risk ratings as predicted by Diamond's model.
By agreement with the portfolio manager, the target average investment maturity is six months, with individual maturities
permitted up to two years, on the condition that the city can withdraw funds as needed without penalty.
Any large, reputable broker with a trading desk dedicated to Treasury bonds should be able to get the desired maturities
at a competitive price.
Example: Fixed principal T-Bonds with 10-year maturities
were paying 5.51% on April 7, 1998, as quoted in the Wall Street Journal.
Strategic objectives give rise to strategic planning maturities
. These maturities
reflect the scheduled points in time by which strategic objectives are scheduled to be accomplished.
The most pronounced increases occurred at intermediate maturities
, perhaps reflecting the improved cyclical outlook for business activity.
options, indefinite maturities
, contingent payments,
BoS is seeking investors' consent for the implementation of a 12-month extendible maturity (soft bullet) for the two remaining covered bonds series with hard-bullet maturities
, constituting 50% of the outstanding covered bonds balance.