Home >  Blossary: Municipality  >  Term: passive bond buying strategy
passive bond buying strategy

There are 2 basic passive bond buying strategies. First is the classic purchase of a bond, and hold it till it matures. Second, slightly more involved is using a 'bond ladder'. This strategy involves the purchase of several bonds with differing maturity dates. As bonds mature, the principle from maturity is used to purchase a new bond, hence, as you climb the ladder, you make new rungs.

0 0

Municipal Bonds

Category: Education

Total terms: 8

Creator

  • Timmwilson
  • (Beijing, China)

  •  (Bronze) 187 points
  • 100% positive feedback
© 2024 CSOFT International, Ltd.