A bond ladder is a portfolio that invests across a range of maturity dates — or “rungs” — allowing the principal to be continually reinvested as bonds mature or are sold. This approach to fixed-income investing may be useful for creating a stream of income and helping to manage interest rate risk.
Nuveen’s Bond Investing Ladder Tool can help you see how a laddered portfolio may perform in various rising rate environments as well as generate estimated investment values, portfolio yield, annual income and total return.