Intermediate/Medium-Term Debt

AAA

DEFINITION of 'Intermediate/Medium-Term Debt'

A type of fixed income security with a maturity, or date of principal repayment that is set to occur in the next 3-10 years. Bonds and other fixed income products tend to be classified by maturity date, as it is the most important variable in the yield calculations. In a standard (or positive) yield curve environment, intermediate-term bonds pay a higher yield for a given credit quality than short-term bonds, but a lower yield compared to long-term (10+ years) bonds.

INVESTOPEDIA EXPLAINS 'Intermediate/Medium-Term Debt'

In recent years, there has been a steady decline in the issuance of long-term bonds (those maturing in over 10 years). In fact, the 30-year U.S. Treasury bond was discontinued in 2002 as the spread between intermediate-term and long-term bonds reached all-time lows. While the 30-year Treasury was revived in 2006, for many fixed income investors, the 10-year bond became the "new 30 year," and was considered the benchmark rate in many calculations.

RELATED TERMS
  1. Government Security

    A bond (or debt obligation) issued by a government authority, ...
  2. Debt Security

    Any debt instrument that can be bought or sold between two parties ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  5. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  6. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
Related Articles
  1. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  2. Where can I buy government bonds?
    Investing

    Where can I buy government bonds?

  3. Advanced Bond Concepts
    Bonds & Fixed Income

    Advanced Bond Concepts

  4. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center