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bond ladder refers to a strategy where an investor spreads out their investments in bonds over a range of different maturities. It works like a ladder of steps, with each step representing a bond with a different maturity date. This approach allows investors to manage interest rate risk and have regular access to matured bonds while still benefiting from the potential higher returns of longer-term bonds.
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«bond»
«ladder»
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Sentences with «bond ladder»
- 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. (begintoinvest.com)
- We're building a corporate bond ladder for you using ETFs, so there will be no stocks in that portion of the portfolio. (foolwealth.com)
- Well, beyond 10 years you get more volatility than return, so I'd go with a 1 - 10 year bond ladder (or the bond fund equivalent). (awealthofcommonsense.com)
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