Introduction to Defined Maturity StrategiesThe Defined Maturity Strategies are a suite of Treasury, TIPS and agency debentures. Defined maturity strategies provide access to a portfolio of bonds maturing within a specific year. For example, the Treasury Defined Maturity 2028 strategy provides exposure to a portfolio of U.S. Treasury bonds maturing between January 1st of 2028 and December of 2028 through a single investment. Defined maturity strategies can help your credit union implement its investment strategy to specific maturity profiles and risk preferences.
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Diversification: Conveniently own a basket of bonds with similar maturity dates.
Match Cash Flows: Align maturity dates with anticipated expenses & liquidity needs.
Yield Curve Positioning: Target specific points on the yield curve.
Product List
Maturity Year |
Treasury |
TIPS |
Agency |
2024 |
2024 Treasury |
2024 TIPS |
2024 Agency |
2025 |
2025 Treasury |
2025 TIPS |
2025 Agency |
2026 |
2026 Treasury |
2026 TIPS |
2026 Agency |
2027 |
2027 Treasury |
2027 TIPS |
2027 Agency |
2028 |
2028 Treasury |
2028 TIPS |
2028 Agency |
2029 |
2029 Treasury |
2029 TIPS |
2029 Agency |
2030 |
2030 Treasury |
2030 TIPS |
2030 Agency |
2031 |
2031 Treasury |
2031 TIPS |
2031 Agency |
2032 |
2032 Treasury |
2032 TIPS |
2032 Agency |
2033 |
2033 Treasury |
2033 TIPS |
2033 Agency |
Investment Strategy: Each Defined Maturity strategy invests in a basket of individual bonds which mature in a specific year.
Investment Use Case Examples
The Defined Maturity Series could help implement bullet, barbell, and ladder strategies.
Bullet Strategy: A bullet strategy involves concentrating bond holdings around a specific maturity point rather than spreading them out across the yield curve. By using defined maturity SMAs the credit union can focus investments on Treasury securities that mature at a single target date or within a narrow time frame, typically at the peak of the yield curve where yields are expected to be most advantageous.
Barbell Strategy: A credit union can implement a barbell yield curve strategy using defined maturity Treasury SMAs by strategically investing in two separate groups of Treasury securities with contrasting maturities—typically short-term and long-term bonds, while avoiding intermediate maturities.
Ladder Strategy: A credit union can effectively utilize defined maturity Treasury SMAs to implement a laddering yield curve strategy by purchasing Treasury securities that mature in sequential years. This approach spreads the credit union's investments across a range of different maturities, allowing for a steady stream of income as each bond matures annually or bi-annually, depending on the ladder setup.
Bullet Strategy: A bullet strategy involves concentrating bond holdings around a specific maturity point rather than spreading them out across the yield curve. By using defined maturity SMAs the credit union can focus investments on Treasury securities that mature at a single target date or within a narrow time frame, typically at the peak of the yield curve where yields are expected to be most advantageous.
Barbell Strategy: A credit union can implement a barbell yield curve strategy using defined maturity Treasury SMAs by strategically investing in two separate groups of Treasury securities with contrasting maturities—typically short-term and long-term bonds, while avoiding intermediate maturities.
Ladder Strategy: A credit union can effectively utilize defined maturity Treasury SMAs to implement a laddering yield curve strategy by purchasing Treasury securities that mature in sequential years. This approach spreads the credit union's investments across a range of different maturities, allowing for a steady stream of income as each bond matures annually or bi-annually, depending on the ladder setup.
