Bond funds expose investors to interest rate risk and fluctuating returns. Individual bonds 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. By continually reinvesting in longer-dated bonds, the overall portfolio benefits from higher income during periods of rising rates.
You can customize your corporate or municipal bond ladder by excluding companies or sectors that don’t meet your clients’ environmental, social, and governance (ESG) criteria.
Tax management solutions
Parametric takes a uniquely active approach to tax management by harvesting tax losses continually, selling the highest-basis lots, and generating excess losses to use elsewhere in your clients’ portfolio or at another time.