Bond Ladder Strategy
Instead of buying bonds that are scheduled to mature during the same year you purchase CDs or bonds that mature at staggered future dates. Laddering also increases portfolio. How To Build A Bond Ladder Fidelity If one of them goes bad it could take a mean slice out of your portfolio. Bond ladder strategy . An investor builds a bond ladder by investing an equal amount of capital into bonds that will mature on different dates. Bond laddering strategy can offer higher average yields because generally the bonds with higher maturity offer higher yields. By staggering maturity dates you wont be locked into one bond for a long duration. Because bond ladders by definition hold different maturities this strategy may help. This strategy is designed to provide current income while minimizing exposure to interest rate fluctuations. The ladder strategy also increases liquidity of bond investments because at least one bond is relatively close to maturity. Callable bonds can be