The weighted-average time to the return of a dollar of principal. It is determined by multiplying each portion of principal received by the time at which it is received, and then summing and dividing by the total amount of principal. Thus, if a four-year bond with a face value of $100 and principal payments of $40 the first year, $30 the second year, $20 the third year, and $10 the fourth year, WAM=.4 X 1 yr. + .3 X 2 yr. + .2 X 3 yr. + .1 X 4 yr. = 2 yr.
A weighted average of the maturities of the bonds in a fund's portfolio, compounded by weighing each maturity date (i.e., when the security comes due) by the market value of the security.
An arithmetic mean of the remaining term to maturity of the underlying mortgage loans that collateralize a security.
The weighted average maturity of an MBS is the weighted average of the remaining terms to maturity of the mortgages underlying the collateral pool at the date issue, using as the weighting factor the balance of each of the mortgages as of the issue date.
The arithmetic mean of maturities of securities held by a mutual fund.
The average remaining term to maturity of the underlying mortgage loans that collateralize a security, weighted by remaining principal balance.
Weighted averageportfolio yield Weightedaverage remaining maturity
The average remaining term to maturity of the underlying mortgages that collateralize a security. May be expressed in terms of weighted average maturity year.