What Is Maturity?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Maturity is part of a loan contract which specifies the end of the life of the asset, i.e. when the principal will be repaid. For example, US 10 year Treasury bonds will have the principal amount repaid in 10 years time. Usually the longer the maturity, the higher the yield as there is more of a risk of default due to the unpredictability of long-term events.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.