QUICK DEFINITION
Bond Ladder is a portfolio structure that spreads bond maturities across multiple dates rather than concentrating them at one point.
WHY IT MATTERS
Why Bond Ladder matters in bond markets
A ladder can reduce reinvestment timing risk and create a recurring stream of maturing principal.
MARKET CONTEXT
How to think about it
Bond investors use bond ladder as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Bond Ladder important for fixed-income investors?
← Back to the Bond Market Glossary Yes. A ladder can reduce reinvestment timing risk and create a recurring stream of maturing principal.