Strategy Insights

3 Potential Benefits of Bond Laddering


1) Interest Rate Risk
Bond ladders can help mitigate the impact of rising rates by allowing the reinvestment of periodic bond maturities at current interest rates.

2) Concentration Risk
Bond ladders, by definition, hold a number of different issues. This helps create diversification, both in the portfolio and the potential for income.

3) Liquidity
Because bond ladders by definition hold different maturities, this strategy may help investors with financial planning for future life events.

Learn More About Bond Laddering: A Simple Strategy Designed to Benefit Many Fixed Income Investors

Explore the Latest Market Insights

Visit our blog to see our latest views on the markets and the economy.