Bond Laddering

Business, Legal & Accounting Glossary

Definition: Bond Laddering


Bond Laddering


Full Definition of Bond Laddering


A strategy that involves spreading out investments among bonds with different maturity dates. This strategy is intended to reduce interest rate risk. For example, if interest rates are rising, an investor can use the proceeds from a maturing bond to purchase bonds with a higher yield. Bond laddering also offers investors greater liquidity, since their entire investments are not tied up for a lengthy period.


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Definition Sources


Definitions for Bond Laddering are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.