BAILEY FINANCIAL GROUP NEWSLETTER

February 12, 2024

Three Good Reasons to Bring Back the Bond Ladder

 

Understanding The Bond Ladder

 

When interest rates were at their lowest, a period that stretched from the Great Financial Crisis of 08-09 up until the pandemic, there wasn’t much benefit to assembling a classic bond ladder in portfolios.

What’s the difference between a low-yield 2-year bond and a low-yield 5-year bond? Well, not much. But the return of yield could also bring back the benefits of this traditional investment strategy.

Download our newsletter for a quick recap of what bond ladders are and a few of the good reasons investors use them…

Important Disclosures: Investments in fixed-income securities are subject to market, interest rate, credit and other risks. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can cause a bond’s price to fall. Credit risk is the risk that an issuer will default on payments of interest and/or principal. This risk is heightened in lower rated bonds. If sold prior to maturity, fixed income securities are subject to market risk. All fixed income investments may be worth less than their original cost upon redemption or maturity. Bond laddering does not assure a profit or protect against loss in a declining market.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Bailey Financial Group is a separate entity from WFAFN.

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