Bond Ladder

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • multiple bonds
  • bond laddering
  • hedge your bets

Definition of Bond Ladder

  1. An investment portfolio where a series of bonds have differing maturity dates. Purchasing multiple small bonds with different maturity dates instead of one large bond can lower interest rate risk and increase liquidity. When properly laddered, the maturity dates of the bonds will be evenly spaced over a set period.

Related Terms and Acronyms

  • Laddering Definition,
    • Staggering deposits into investments such as CDs in order to vary and better the rate of return.
  • Bond Definition,
    • A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
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