At The Money: Building A Bond Ladder

Masters in Business

Bloomberg

Business, Entrepreneurship, Investing

4.4 • 2.2K Ratings

🗓️ 23 October 2024

⏱️ 15 minutes

🔗️ Recording | iTunes | RSS

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Summary

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How can investors seeking income plan for a future where bond yields are unknown? One solution is building a ladder of bonds that mature in different years to both lock in higher rates now (in case yields drop), and reinvest later (if rates rise). For more on the subject, Barry Ritholtz, speaks with Karen Veraa, Head of iShares US Fixed Income Strategy at BlackRock.

Each week, “At the Money” discusses an important topic in money management. From portfolio construction to taxes and cutting down on fees, join Barry Ritholtz to learn the best ways to put your money to work.

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0:27.6	Do nice guys Really Finish Last. I'm Tim Harford, host of the Cautionary Tales
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0:53.7	Listen on the I Heart Radio app, Apple Podcasts, or wherever you listen to podcasts. We can't predict the future
1:08.0	or resisting you never don't urge to try. Over the past decade or maybe even longer, no one's accurately predicted which way rates were going.
1:21.0	Are they going to rise? Are they going to fall?
1:23.5	And they're going to stay sedetti? This creates a challenge for bond
1:27.3	investors who are usually looking for a predictable income stream from their fixed income holdings.
1:34.6	One solution, create a ladder of bonds of different maturity rates so that regardless of
1:40.9	what occurs, you have a predictable yield series.
1:45.6	You can lock in higher yielding paper if rates fall,
1:49.0	but you also free up more capital on an annual basis if rates rise. I'm Barry Riddheltson on today's
1:55.7	edition of At the Money we're going to show you how to create a bond ladder to
2:01.4	help us unpack all of this and what it means for your fixed income portfolio,
	...

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