hey guys, randomly came across the term bond laddering
what does that even mean?
it’s actually pretty simple tbh, you buy bonds with different maturity years instead of putting everything in one like 1 year + 2 year + 3 year makes your cash flow more spread out
yaa, it also helps when interest rates move.
you keep reinvesting something every year instead of locking everything at once.
Good points shared above, just to sum it up.
Bond laddering = investing in multiple bonds with different maturity periods (for example 1, 2, 3, 4, 5 years).
This way, a part of your money keeps maturing at regular intervals.
So instead of putting everything in a single long-term bond, you create a “ladder” of maturities spread across years.
It gives you flexibility and avoids getting stuck with one fixed rate for too long.
In terms of benefits, laddering helps with:
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Regular liquidity: something matures every year
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Reduced interest rate risk: you’re not locking everything at one rate
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More predictable cash flow
We’ve also created a simple explanation + visual breakdown here:
Feel free to check it out, it walks through how a ladder works step-by-step.