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.
- Part of Speech: noun
- Industry/Domain: Financial services
- Category: Personal investment management
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- Timmwilson
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(Beijing, China)