Ladder strategy
A fixed income security plan that invests in similar amounts for different amounts of time. The idea is to reduce the threat of interest rates.
Ladder strategy
Definition:
A Bond portfolio construction Strategy that invests approximately equal amounts in every maturity within a given range. ...
Ladder strategyA bond portfolio strategy in which the portfolio is constructed to have approximately equal amounts invested in every maturity within a given range.
Ladder Strategy
A strategy in which a bond portfolio is constructed that invests equal amounts of money in every maturity within a given range in order to offset interest rate risk.
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By using the bond ladder strategy, you could invest 50,000 US dollars (USD) in five different bonds. Each of these bonds would have a face value of 10,000 USD, and each would have a different maturity, the end date when they give out the cash.
ladder strategy A strategy that seeks to reduce interest rate risk by creating a portfolio with... Laffer Curve A curve assuming that for a given economy, there exists an optimal income tax... laggard A stock that is underperforming.
For example, an investor beginning a three-year ladder strategy would start by depositing equal amounts of money each into a 3-year CD, 2-year CD, and 1-year CD.
 See also: Strategy, Bond, Short, Maturity, Interest
  
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