| Bond Ladder | |
 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). |
|
 Advantages of bond ladders are consistent returns, low risk and ongoing liquidity because every interval you have securities expiring. The bond ladder also protects the investor's bond portfolio from call risk: since maturies are staggered, there is little chance that all bonds in one portfolio will be called at once. |
|
 Call Features: Don't Get Caught Off Guard - Learn why early redemption occurs and how to avoid potential losses. The Basics Of The Bond Ladder - If you want a diversified portfolio and steady cash flow, you should learn about this fixed-income strategy. Advanced Bond Concepts - This detailed tutorial explains some of the more complex concepts and calculations you need to know for trading bonds, including bond pricing, yield, term structure of interest rates, duration, and much more. |
|
Related Terms
 |