Treasury notes (intermediate-term): maturities
of three to 10 years
All told, we see that as a sign that longer maturities
are a good value right now.
I can lengthen the effective maturity of our debt by executing interest rate swaps," offered the treasurer, "but to rebalance our portfolios fully, we also may need to shorten asset maturities
by selling some of our longer-term mortgage investments.
Fitch expects that the company's current cash and marketable securities balance should fund all cash requirements through at least 2007 and potentially 2008, depending on market access for 2008 maturities
Under the new structure, the Select Maturities
Fund will acquire substantially all of the assets and liabilities of the Select Maturities
2 fund in exchange for newly issued shares of Select Maturities
, which will then be distributed to Select Maturities
However, the maturity on Treasury bonds is a flat 10 years, compared with maturities
of up to 10 years for notes.
If your investment policies are flexible enough to allow you to buy 15-month maturities
, then you aren't competing with money-market funds -- and often can capture meaningful yield increases.
In deciding on the appropriate maturities
, the investor must bear in mind that the longer the maturity, the greater the exposure to a loss of principal should the instrument have to be sold at a time interest rates are higher than they were when the instrument was purchased.
9 million and contains serial bonds with remaining maturities
of June 1, 2006 through June 1, 2015, a term bond with a maturity of June 1, 2019, and flexible amortization term bonds with maturities
of June 1, 2023, 2028, 2035, and 2042.
Bonds with long maturities
are thus considered to have significantly more interest rate risk than do bonds with relatively short maturities
Fitch believes that amounts available for borrowings under Charter's bank revolver, continued access to capital markets, and nominal amounts of scheduled maturities
through 2006 will provide the company with sufficient liquidity and financial flexibility to continue to operate outside a bankruptcy filing.