longerdated

Longerdated is a descriptive term used in finance and economics to refer to instruments, contracts, or obligations with maturities or expiration dates that are farther in the future relative to a chosen reference point. The term is relative rather than fixed; what counts as longerdated depends on the context and market norms.

In fixed income, longerdated securities include bonds with maturities beyond the near term, commonly 10 years or more, such as 20- and 30-year government bonds. These instruments typically offer higher yields to compensate for greater interest-rate and reinvestment risk, but they also exhibit greater price sensitivity to changes in interest rates (duration and convexity) and may be less liquid than shorter-dated notes.

In derivatives, longerdated contracts have more time until expiration, which affects pricing, volatility exposure, and hedging strategies. For options, longerdated instruments (often referred to as longerdated options or LEAPs) can have expirations of one year or more, providing extended exposure to the underlying asset.

The term also appears in asset-liability management, where longerdated liabilities require corresponding longerdated assets to manage duration risk. The precise threshold for what is considered longerdated varies by market, sector, and investor objectives.

See also: yield curve, duration, convexity, term structure, risk management.