Sentences with phrase «staggered maturities»
The phrase "staggered maturities" refers to a situation where different debts or financial obligations have varying due dates or repayment schedules. In other words, it means that these debts or obligations do not all become due at the same time, but rather they are spread out over different periods. Full definition
Use this tool to help create a consistent income stream by investing in different bonds with staggered maturity dates.
fidelity.com
The concept of staggering the maturity of your bonds is the final, and crucial step to creating a truly boring, sleep - at - night portfolio that is still capable of a cash yield approximately 5 % above the inflation rate.
He set up a bond ladder by staggering the maturity of his bond holdings.
You can adjust to the lock - up periods of CDs by creating a «ladder,» which is buying CDs at staggering maturities whether it's over several months or years.
Laddering involves building a portfolio of bonds with staggered maturities so that a portion of the portfolio will mature each year.
You can stagger their maturities according to your own financial needs.
The company does not have debt that matures until 2014, with staggered maturities thereafter at 2017 and 2019.
Laddering means staggering the maturity dates of your fixed - income investments to own an appropriate mix of short -, intermediate - and long - term bonds.
The RBC ETF seeks to provide unitholders with exposure primarily to the performance of a diversified portfolio of Canadian corporate and government bonds, divided («laddered») into five groupings with staggered maturities from one to five years, that will provide regular income while preserving capital.
The five - year terms will give you the highest interest rate currently available, while the ladder's staggered maturities help provide ongoing liquidity.
A laddering strategy entails staggering the maturity dates of investments so that a portion of the portfolio matures each year — or more frequently for people that need it.
Given the limited number of bond terms, and therefore difficulty setting up a bond ladder with such bonds, many use a TIPS fund rather than buy individual securities, but diversification of TIPS is not required either if you do not need staggered maturities (a bond ladder).
A laddered bond portfolio, which staggers the maturity of the bonds and reinvests the proceeds at regular intervals, is a good start, but you need to diversify beyond that.
This portfolio is comprised of individual bonds where each bond or series of bonds features strategically staggered maturity dates at regular intervals.
By staggering the maturity dates on short - term CDs, consumers have access to their cash on a regular, predictable basis.
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.
Choose taxable or tax - advantaged bonds, as well as actively managed or laddered portfolios with staggered maturity dates
First, by staggering the maturity dates, you won't be locked into one particular bond for a long duration.
Staggering the maturities of your fixed - income holdings to take advantage of rising interest rates (bond ladder).
Bond Ladder Tool Create a consistent stream of income by purchasing bonds with staggered maturities.
Another alternative might be to build a bond ladder with an average maturity of 3 years by purchasing 5 bonds, staggering maturities of each by one year so that the first bond matures on 1/1/2010 and the last on 1/1/2014.
A bond ladder is an investment strategy used to diversify a portfolio of fixed income securities by purchasing bonds with staggered maturities.
A ladder arranges a number of CDs with staggering maturities, freeing up a portion of your investment at preset intervals as each CD matures.
Staggering the maturity dates allow investors to avoid being locked into a single interest rate with the idea that, over the long term, they will be able to reinvest at higher interest rates.
Long - term savers can reduce the risk of rising interest rates by building a bond «ladder» of staggered maturities.
Since there are several bonds with a staggered maturity, bonds are constantly maturing and being reinvested in the current interest rate environment.
To ensure regular income, inflation protection and tax - efficiency, the portfolio should include at least 20 dividend - paying stocks, as well as government and corporate bonds with staggered maturities.
A CD ladder is a set of CDs with staggered maturity dates.
These staggered maturity dates can help you gain more regular access to your savings while still taking advantage of higher rates.
Invest in multiple bonds with staggered maturities to help provide a consistent income stream and hedge against interest rate risk.
Within a few years, you'll have certificates that renew regularly, with staggered maturity dates.
A common response to inflexibility in an investment product is to opt for multiple smaller investments with staggered maturity dates.
Staggering the maturities in your bond portfolio can efficiently balance interest rate risk and reinvestment risk.
Bonds: Staggering the maturities in your bond portfolio can efficiently balance interest rate risk and reinvestment risk.
A bond ladder contains bonds of relatively equal amounts with staggered maturities.
When you «ladder», you stagger the maturities on a series of investments (as with bonds or GICs).
Of course, you can limit your exposure to surrender penalties by investing in several CDs with staggered maturity dates.
Reinvestment risk, or the risk of reinvesting when interest rates are low, is alleviated by the staggered maturity dates.