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This page is intended for US prospects, clients and investors only and includes information about the capabilities, staffing and history of RIAM US and its participating affiliates, which may include information on strategies not yet available in the US. SEC regulations are applicable only to clients, prospects and investors of RIAM US. Robeco BV, Robeco HK and Robeco SH are considered a “participating affiliate” of RIAM US and some of their employees are “associated persons” of RIAM US as per relevant SEC no-action guidance. Employees identified as associated persons of RIAM US perform activities directly or indirectly related to the investment advisory services provided by RIAM US. In those situations, these individuals are deemed to be acting on behalf of IUAM, a US SEC registered investment adviser.
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Fixed income
Maturity date
The maturity date is crucial in determining the lifespan of an investment or loan. Bonds come in various maturities, such as short-term (up to 5 years), medium-term (5-10 years), and long-term (10+ years), each with differing risk and return profiles.
Investors often choose bond maturities based on their financial goals, as longer maturities typically offer higher yields to compensate for potential interest rate risk.
For loans, the maturity date represents the deadline for full repayment of the borrowed amount, including principal and interest. Any unpaid balance beyond this date may result in additional fees or penalties. Understanding maturity dates enables both investors and borrowers to plan cash flows effectively and manage financial commitments with precision.
Yield to maturity (YTM)
Yield to maturity (YTM) is the total return an investor can expect to earn if a bond is held until its maturity date, assuming all interest payments are reinvested at the same rate. YTM considers the bond’s current price, face value, coupon rate, and time to maturity, providing a comprehensive measure of its potential profitability.