High yield: the next step in bond laddering

BlackRock
By June 6, 2019 07:38

High yield: the next step in bond laddering

This is an excerpt, click here to read the entire article.

Defined-maturity bond ETFs can vastly simplify the task of laddering high-yield bonds. Karen explains.

Bond laddering is a popular strategy among investors seeking steady returns and income, particularly when interest rate conditions are uncertain. As I’ve written about elsewhere, laddering is the practice of buying bonds that mature in consecutive calendar years, and then reinvesting the proceeds from maturing principal into new bonds that extend the ladder out another year.

Defined-maturity bond exchange traded funds (ETFs), such as iShares iBonds® ETFs, make building bond ladders more efficient by combining the control of investing in individual bonds with the convenience and diversification of an ETF. For example, an investor could build a five-year ladder by purchasing five defined-maturity ETFs, thereby gaining exposure to hundreds of underlying bonds with known maturity dates, monthly income stream potential, and an overall experience that’s vastly simpler than do-it-yourself.

Reaching higher

Most investors choose to ladder

BlackRock
By June 6, 2019 07:38

Search

Asset Allocation Consensus June

Twitter

Sign up on #OpinioPro to read all the latest research on #fixedincome, #assetallocation and so much more! Click here: https://t.co/90NYM4HBVh

In UBP's Monthly #Investment #Outlook they write: "After Q1 global weakness, world growth is expected to stabilise in Q2 and progressively recover moving into 2H19". Read the whole outlook here: https://t.co/jlNTFp5V6M

Load More...

Search on date

June 2019
M T W T F S S
« May    
 12
3456789
10111213141516
17181920212223
24252627282930