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Weighted average maturity  (WAM) - Financial definition

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Synonym:  average maturity

Concise definition of the term weighted average maturity

The market value weighted average maturity of the bonds in a portfolio, where maturity is defined as Stated Final for bullet maturity bonds and Average Life for amortizing instruments, including mortgage pass-throughs, [ACR0009803S]CMOs[ACR0009803E], amortizing asset-backed securities and [ACR0009010S]ARMs[ACR0009010E].

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