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laddering

laddering

7.8
A way of buying similar investments that mature at different times to reduce risk
  • noun
  • /ˈlædərɪŋ/
  • Specialized
translation icon : escalonamiento
  • To ensure steady income, she explained the benefits of laddering various CDs to maximize her returns.
  • laddering scheme

Examples

  • And that just means that if, if you've bought this ladder of, of different expirations bonds, there'll always be something expiring soon.

  • Many investors use laddering as a strategy to manage risk by investing in bonds with different maturity dates.

  • By employing laddering, investors can minimize the impact of interest rate fluctuations on their portfolios.

How Risk-Averse

maximin
  • Specialized
9.9
laddering
  • Specialized
7.8

Surface Forms

laddering singular
ladderings plural

Morphology

laddering = ladder (transparent) = ladder + ing

Derived from the verb 'ladder' + the productive nominalizing '-ing'; the meaning 'practice of arranging investments with staggered maturities' is a direct, metaphorical extension.

Etymology

Laddering comes from ladder, which has 'steps' or 'rungs' at different heights. So, laddering in finance is putting investments at different dates like rungs on a ladder to reduce risk and get regular returns.