|
Bonds
-
Type of Yields
-
Bond Rating Agencies
-
The Yield Curve
- Laddering
Types of Bonds
- Corporate Bonds
-
Municipal Bonds
-
Asset Backed Securities
-
High-Yielding Securities –
Junk Bonds
-
Enhanced Trust- Preferreds
-
Zero-Coupon Bonds
-
STRIPS Bonds
-
Internotes
-
International Bonds
-
Brady Bonds
|
|
Laddering
Laddering is stretching
out, in equal amounts, the maturity dates of fixed income investments; only
a portion of one’s principle gets reinvested in any given year. The
laddering technique is a prudent way of protecting one’s income stream in a
declining rate environment. Laddering smoothes the income fluctuations in
your account, protecting you from rolling over your entire portfolio in a
low rate environment. It also eliminates the game of trying to predict
future interest rates. The negative is that it’s rigid, and limits
diversification as well as benefits, from an upward spike in rates.
|
