What is long-dated securities? Is it long term bonds?? Thanks..?

Question

Hi everyone out there..

Do u guyz know what is long-dated securities? Cant find the meaning through internet search..

Thanks a lotz... :)

Answer 1

No. That's not right. "Long-dated" refers to how much time left is on the security before expiration/maturity.

Therefore, a long-dated security only applies to securities with time terms on them. That is, it applies to bonds, derivatives (e.g. warrants, futures, forwards), convertible bonds. It does not apply to securities like trusts, stocks, preferred shares and other indefinite securities.

For bonds, it is important to know the long-dated securities because they are much more sensitive to interest rate risk (i.e. duration).

For derivatives, long-dated ones are MUCH more valuable because they have that much more time to gyrate to being "in the money" all the while with implied financing.

CBs are extremely valuable when they are long-dated because they have both the long-bond and the embedded call option in it.

Answer 2

Long-dated securities is not a particular security but a position that an investor takes when purchasing an investment. If you break it down into two words then the meaning of long is to purchase a security with the intent on keeping it for years to realize natural growth. Securities i.e include a note, stock, preferred share, bond, debenture, option, future, swap, right, warrant, or virtually any other financial asset. So in summary long-dated securities means to buy stock and hold for a non-specific amount of years

Answer 3

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