Sentences with phrase «of a bond ladder»

One of the most important benefits of a bond ladder is that it delivers predictable returns (assuming no defaults occur).
Take a video tour of the bond ladder tool and learn how you can build a portfolio of bonds to help create a consistent stream of income over time.
This graphic is intended to illustrate the concept of a bond ladder and does not represent an actual investment option.
Because the purpose of a bond ladder is to provide predictable income over a long period of time, taking excessive amounts of credit risk probably doesn't make sense.
I work with such investors every day, helping them find a combination of a bond ladder, dividend stocks, and enhanced yield.
Setting up a type of bond ladder in these funds would be a very nice addition to a general bond fun in a portfolio if investors want to manage it.
This is opposite of the bond ladder strategy that we mentioned earlier.
If interest rates rise, the value of our bond ladder will decline.
Maybe it would be a good decision to sell your bonds, maybe not, but wasn't the entire point of the bond ladder to take away the guessing game of what's going to happen with interest rates?
Another important feature of a bond ladder is the total length of time the ladder will cover and the number of rungs, or how often the bonds in the ladder are scheduled to mature, returning your principal.
Part of the beauty of a bond ladder is the scheduled cash flow; you know when the bonds will mature and you know how much you will need to reinvest.
Fidelity does not automatically roll the proceeds from one bond to another as part of the Bond Ladder tool.
To maintain the ladder, money that comes in from currently maturing bonds is typically invested in bonds with longer maturities within the range of the bond ladder (see Figure 1).
PowerShares 1 - 5 Year Laddered Investment Grade Corporate Bond ETF (TSX: PSB) tracks the performance of a bond ladder comprised of Canadian investment - grade corporate bonds maturing in one to five years.
If you own a bond ETF as most bond investors increasingly should then you basically own a less organized version of a bond ladder because the whole portfolio is diversified across varying maturities.
To receive the full benefit of a bond ladder, one needs not only to stay the course for a number of years (so that lower yield and higher yield purchases benefit from cost averaging), but also with a relatively stable amount of capital.
That's because many of the benefits of bond ladders — such as an income plan and managing interest rate and credit risk — are based on the idea that you keep your bonds in your portfolio until they mature.
Another key benefit of bond ladders is that they are a great way to manage the two major risks facing fixed - income investors.
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