Forum Discussion
Weighted average maturity
Hello,
I am working with bonds. (People give you money, you have to give it back eventually)
Basically I am trying to create a graph with weighted time to maturity (the time the company has to give it back) and I can´t wrap my head around that. I am not able to create a measure that is able to do DATEDIFF correctly.
The calculation logic of weighted time to maturity or weighted average maturity is basically this:
It can also be interpreted as:
And I am trying to create a graph that looks like this:
The problem is that I dont know how to create a measure with DATEDIFF, because I need the difference in dates for every month and every bond to be different. (for example: in may the time to maturity for a bond is for example 21 months, in june it is only 20, in july 19 and so on..)
The .pbix file is here:
https://mega.nz/folder/vlo0RCJS#Kxh79nbxIEPh05wX-h1hhw
I would appreciate any help whatsoever!
4 Replies
Hi ssstaud ，
The following article is related to weighted average, you can refer to it and hope it can give you ideas.
Sadly this does not help as this graph deals with dynamic time. I will try to depict my problem better this time.
What are the important values here:
mature_at: the time when our company has to pay the money back to the client
amount: how much money we have to pay back (i.e. the weight)
The calculation logic is better described by this:How it works: Lets say that in may 2016 a person bought a bond that matures in 5 yrs for the amount of $100. So WAM is for may 5 yrs. For June 2016 it is 4 yrs 11 months.
In July sb. bought a bond of the same value of $100 that also matures in 5 yrs. So for July 2016 the WAM is 4 yrs 11 months, because:And the graph should look like this (eventually ending in a zero, because all the bonds matured i.e. the money was given back to the client)
Thank you once again for helping me!
Ssstaud, I have exactly the same problem, did oyu manage to solve this?
Hi,
Is there any examples and/or guidance on this question?
