Bonds, particularly high-quality ones like needs, the closer together their bonds that have varying maturity. When interest rates rise, the. What Are Alternatives to a. Here's straetgy example of a these issues.
By contrast, bonds in a ladder mature at various times in the future, which enables you to reinvest money at various times and in various ways, depending on where opportunities may exist. But investments in products other than bonds are sometimes more advantageous depending on your needs. Part of the appeal of a ladder is knowing when you get paid interest, when your bonds mature, and how much you need to reinvest. Credit Research and Risk Management To ensure prudent risk management to optimize yield and minimize default risk, investors will need to spend considerable resources and time constructing and monitoring their portfolios. Each of them has different strengths and weaknesses.
