Laddered Fixed Income

How it works

Bond funds expose investors to interest rate risk and fluctuating returns, while individual bonds can lock investors into maturities. Bond laddering is a dynamic strategy that provides predictable income and benefits from rising interest rates.

To build a laddered portfolio of corporates or municipals, we equally weight investment-grade bonds by maturities along a defined segment of the yield curve. As bonds mature, their proceeds are reinvested into longer maturities, which typically have higher yields. Through continuous reinvestment in longer-dated bonds, the overall portfolio benefits from higher income during periods of rising rates.