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Bond Ladder

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Bond Ladder

What Does Bond Ladder mean?

A strategy for managing fixed-income investments by which the investor builds a ladder by dividing his or her investment dollars evenly among bonds or CDs that mature at regular intervals simultaneously (for example, every six months, once a year, or every two years).

Investopedia explains Bond Ladder

Advantages of bond ladders are consistent returns, low risk, and ongoing liquidity because every interval the investor has securities expiring. The bond ladder also protects the investor's bond portfolio from call risk: Since maturities are staggered, there is little chance that all the bonds in one portfolio will be called at once.

Related Terms:
• Bond
• Corporate Bond
• Interest Rate
• Yield
• Yield to Maturity



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Constructing a bond ladder by purchasing bonds that mature each year will refill the cash bucket once a year.
Fill your buckets: ensure liquidity in investment portfolios by Jefferies, Lon / Utah Business
To create guaranteed income streams, Halverson said, advisers in the banking channel create certificate-of-deposit ladders, and brokerdealers create bond ladders.
Hybrid vehicles: mutual funds are now competing with annuity writers ... by Panko, Ron / Best's Review
56% Bond Ladder Various corporate bonds 15% Foreign and domestic bonds PIMCO Diversified Income Fund 15% Floating rate bonds PIMCO Floating Income 14% Intermediate bonds PIMCO Total Return 35% OF WASHINGTON'S OVERALL PORTFOLIO IS IN BONDS.
Creating a winning bond strategy: with the right approach, bonds can ... by Polyak, Ilana / Black Enterprise
 
 
 
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