laddering
- noun
- /ˈlædərɪŋ/
- Specialized
- To ensure steady income, she explained the benefits of laddering various CDs to maximize her returns.
- laddering scheme
Examples
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And that just means that if, if you've bought this ladder of, of different expirations bonds, there'll always be something expiring soon.
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Many investors use laddering as a strategy to manage risk by investing in bonds with different maturity dates.
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By employing laddering, investors can minimize the impact of interest rate fluctuations on their portfolios.
How Risk-Averse
- Specialized
- Specialized
Surface Forms
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.