Weighted Average Maturity

Weighted average maturity is the average time until the debt investments in a portfolio mature, with larger positions receiving more weight.

A simple example

A portfolio’s largest bond holdings influence its weighted average maturity more than its smallest holdings.

Why this matters to income investors

It summarizes portfolio maturity exposure, but it does not by itself measure duration, credit quality, calls, or expected prepayments.

How to use weighted average maturity in your research

Compare WAM only when calculation methods are consistent, and pair it with duration, credit quality, liquidity, and call or prepayment information.

This material is general education and information, not individualized investment, tax, or legal advice.