Weighted Average Remaining Term (WART)
Contents
Understanding Weighted Average Remaining Term (WART) in Investments
Discover the intricacies of Weighted Average Remaining Term (WART), a crucial metric utilized in assessing the average time to maturity of asset-backed securities (ABS) portfolios, especially mortgage-backed securities (MBS).
Exploring the Significance of WART
Dive into the importance of WART as a measure for investors to evaluate the maturity profile of investment portfolios. Learn how WART aids in comparing alternative investments and understanding the impact of time to maturity on risk exposure.
Calculating WART: A Step-by-Step Guide
Unravel the methodology behind calculating WART, from determining the relative size of assets within a portfolio to weighing their remaining time to maturity. Gain insights into the practical application of WART calculations in assessing investment risks and opportunities.