What is a ladder and how does it work?
A ladder is a fixed income investment strategy where an investor staggers the maturity of various bonds over a longer duration to mitigate reinvestment risk caused by interest rate fluctuations. The TD Waterhouse Fixed Income Centre allows you to create a hypothetical portfolio of bonds with corresponding investment statistics such as monthly and total interest income. It also provides you with an annual graphical representation of the bonds held and their corresponding maturity. A ladder is built by checking off the bonds from either a search result or a quick pick result and clicking on the Build Ladder button. This will move you to the Build Ladder page. Once in this page, you can select the quantity held for each bond selected and recalculate the investment statistics based on the values entered. Print preview will allow you to generate a printer friendly version of the document for your review.
