PORTFOLIO RISK
Weighted Average Maturity
Summarizes average time to maturity using chosen portfolio weights.
Formula
WAM = Σ(w_i × maturity_i)
Variables: Principal/market weights; maturities
What it means
Summarizes average time to maturity using chosen portfolio weights.
Example
Equal 2-year and 6-year positions have WAM 4 years.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.