The Capability Maturity Model (CMM) was created by Carnegie Mellon University to ensure software development contractors had adequate processes. CMM evaluates and improves an organization’s processes through five levels of maturity, with the highest level focusing on continuous improvement. CMM is used in information technology management and has been replaced by the Capability Maturity Model […]
Global maturity is when a bond or set of bonds mature in one calendar year, resulting in a large amount of principal. Balloon maturity involves a single fixed maturity date and a sinking fund to ensure repayment. This approach benefits both the issuer and investor, with lower payments and increased yield. Often associated with a […]
Interest to maturity means the full amount of interest earned on an investment is paid on its maturity date. Bonds that offer this are sometimes called “zero coupon” or “stripe” bonds. Interest is extra money payable to the lender as compensation for being out of pocket. This type of investment is suited to people who […]
Weighted average maturity is a calculation used for mortgage-backed securities and bonds to determine the time to final payment for each asset in the portfolio. It does not provide insight into the quality of individual investments but can give a clearer picture of the collateral’s long-term time to pay. Weighted average maturity is a term […]
Balloon maturity is when a bond’s maturity date falls within a calendar year, resulting in a large payout. The bond is quoted in terms of expected yield, and the issuer agrees to a fair repayment schedule. Payments are made into a sinking fund to ensure repayment. This approach benefits both the issuer and investor, with […]
