Sentences with phrase «constructing bond ladders»

He recommends constructing bond ladders.

Today I want to talk through an example of how to construct a bond ladder and what it might look like.

Investors could also construct a bond ladder to increase diversification and mitigate credit risk by purchasing bonds with different interest rates and maturity dates.

How have maturity series indices and ETFs enabled your ability to construct bond ladders?

You can either buy a 5 - year bond or GIC whose maturity date matches your time frame or you could construct a bond ladder.

Not exact matches

I am attracted by the idea of constructing a linker ladder with individual bonds, but every time I try and research how to actually do it, I seem to get lost in a forest of complex advice, rules and processes.

A laddered preferred portfolio uses the same concept as bond laddering, where a portfolio is constructed with instruments of staggering maturities so that a fixed portion of the portfolio matures each year.

You can strike a happy medium by constructing a bond or GIC «ladder,» says Hank Cunningham, fixed income strategist at Odlum Brown Ltd. and author of In Your Best Interest.

The portfolio will be constructed with a ladder of individual - year - targeted («bullet»), low - cost, highly diversified ETFs, each of which holds positions in hundreds of individual bonds.

When the first bond matures in 2 years, you reinvest the money in a bond with a 10 - year maturity, maintaining the ladder you've constructed.

A couple of points to note: despite the name, the Claymore Laddered Bond ETFs are not quite the same as a bond ladder an investor could construct herself because unlike a ladder, the investor has no control over reinvesting maturing bonds in the Bond ETFs are not quite the same as a bond ladder an investor could construct herself because unlike a ladder, the investor has no control over reinvesting maturing bonds in the bond ladder an investor could construct herself because unlike a ladder, the investor has no control over reinvesting maturing bonds in the ETF.

Our laddered portfolios seek to diversify sector and issuer exposure and are constructed using high quality municipal bonds whose maturities are staggered from one to six, 12 or 18 years — ranges chosen specifically in an effort to add value.