Laddered Fixed Income

For institutional investors

Our laddered strategies provide a systematic and customizable approach for income-oriented investors.

Parametric’s Laddered Fixed Income strategies give investors the opportunity to adjust to rising interest rates and improve yields. These strategies aim to deliver predictable income and preserve investor capital.

Corporate Ladders

Our corporate laddered strategies allow for rules-based, equal-weighted allocation across the yield curve, customized for credit quality.

Treasury Ladders

We seek to deliver predictable cash flow and capital preservation from US Treasuries.

Custom Ladders

We create custom portfolios composed of a blend of corporates and Treasuries that seek to match cash flows.

Intended benefits of laddered bond portfolios

Predictable exposure

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Once designed, a portfolio structure will be maintained to balance reinvestment and price risk.

Execution

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Our size and scale allow us to buy and sell bonds at attractive prices with a focus on high efficiency and cost-effective trades.

Risk management

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We seek to minimize downside risk with fundamental credit analysis from our credit research teams.

How it works

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.