
Disclaimer
Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website.
The information contained in the Website is NOT FOR RETAIL CLIENTS - The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorized to receive such information under any other applicable laws. The value of the investments may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.
In the UK, Robeco Institutional Asset Management B.V. (“ROBECO”) only markets its funds to institutional clients and professional investors. Private investors seeking information about ROBECO should visit our corporate website www.robeco.com or contact their financial adviser. ROBECO will not be liable for any damages or losses suffered by private investors accessing these areas.
In the UK, ROBECO Funds has marketing approval for the funds listed on this website, all of which are UCITS funds. ROBECO is authorized by the AFM and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.
Many of the protections provided by the United Kingdom regulatory framework may not apply to investments in ROBECO Funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. No representation, warranty or undertaking is given as to the accuracy or completeness of the information on this website.
If you are not an institutional client or professional investor you should therefore not proceed. By proceeding please note that we will be treating you as a professional client for regulatory purposes and you agree to be bound by our terms and conditions.
If you do not accept these terms and conditions, as well as the terms of use of the website, please do not continue to use or access any pages on this website.
Fixed income
Bond maturity
Bond maturity refers to the date when a bond's principal, or face value, is repaid to the investor, and interest payments cease. It marks the end of the bond's term, which can range from short-term (less than one year) to long-term (30 years or more). The maturity date helps investors assess the bond's duration risk, as longer maturities generally involve higher interest rate risk. Usually, the longer the term to maturity, the higher the interest rate on the bond will be to compensate for this increased risk. Also, longer-term bonds are more volatile in price on the secondary bond market due to their sensitivity to interest rate changes.
Bond maturities
Bonds can be characterized as having the following maturities:
Short-term bonds: up to three years
Intermediate-term bonds: four to ten years
Long-term bonds: more than ten years
Other bond maturity considerations
Interest rate risk: Longer maturities mean that there's a greater chance for interest rates to change over the life of the bond, which affects the bond's price inversely.
Price volatility: Longer-term bonds exhibit greater price fluctuations in response to interest rate movements compared to shorter-term bonds.
Yield considerations: Investors demand higher yields for longer-term bonds to compensate for the increased risk associated with time and interest rate uncertainty.