Search results
Results From The WOW.Com Content Network
A bond ladder is a strategic investment approach that involves purchasing a variety of bonds with differing maturity dates. Think of it as a staircase of investments, where each step represents a ...
Laddering avoids the risk of reinvesting a large portion of assets in an unfavorable financial environment. Each "rung" of the ladder is a bond of a specific maturity date and the "height" of the ladder is the difference between the shortest maturity bond and the longest maturity bond. The more rungs in the ladder (10 or more is recommended ...
A financial advisor told me the pros of building a two-part bond ladder (three-year Treasurys and 10-year corporates) to generate fixed income and cover required minimum distributions (RMDs).
LIBOR vs Bond: Take advantage of anomalies in the spread between Bond and Libor Curves. Frequently, these above described anomalies occur when market participants are forced to make non-economic decisions due to accounting regulations, book clean-up, public furor or exuberance over a certain product, or sheer panic.
A bond ladder is a way to structure your investment in bonds, with bonds maturing at regular intervals. For example, an investor might have bonds with maturities every year for the next five years.
An equity-linked note (ELN) is a debt instrument, usually a bond issued by a financial institution such as an investment bank or a subsidiary of a commercial bank. ELNs are liabilities of the issuer, but the final payout to the investor is based on an unrelated company's stock price, a stock index or a group of stocks or stock indices.
Bonds can offer a safe way to invest and earn consistent interest income over time. A bond ladder exchange-traded fund (ETF) offers exposure to multiple bonds with varying maturity dates.
A long put ladder is also called a bear put ladder. [8] A short put ladder is also called a bull put ladder. [9] A ladder can be seen as a modification of a bull spread or a bear spread with an additional option: for instance, a bear call ladder is equivalent to a bear call spread with an additional long call. A bull put ladder is equivalent to ...