longmaturity

Long maturity refers to a debt instrument, financial product, or investment horizon that has a long time until its payoff or maturity date. In bond markets, it typically denotes instruments with maturities of ten years or more, though definitions vary by market and context.

Common long-maturity instruments include 20-year, 30-year, or longer government bonds; corporate bonds with extended maturities; and long-dated zero-coupon bonds. In some markets, the longest maturities may extend to 40 years or more. Long maturities are often used to finance large or capital-intensive projects and to match long-term obligations.

Long-maturity securities are more sensitive to changes in interest rates due to their longer duration. They generally offer higher yields to compensate for greater interest-rate risk, inflation risk, and liquidity risk. Price movements for long bonds can be substantial when rates shift, and their real returns depend on future inflation and economic conditions.

Asset managers, pension funds, and insurers frequently prefer long maturities to align with long-term liabilities. Governments also issue long-dated debt to fund infrastructure and other enduring needs. The shape of the yield curve and the term premium reflect market expectations for growth, inflation, and monetary policy.

In related contexts, “long maturity” may describe derivatives or contracts with extended expiration dates. It is often contrasted with short-m maturity or near-term horizons in discussions of risk, pricing, and portfolio construction.