The term "bond ladder" refers to a strategy that bonds investors use to diversify their portfolios. Investors do this by breaking their bond holdings into different kinds of bonds, and then hold the bonds with the longest maturity date until it reaches its maturity date.

An investment strategy known as a bond ladder involves spreading bond investments over time with continuous reinvestment.

It looks simple; it is even easier to do, and it brings great benefits.

Let's say you had a million dollars in your pocket, and when you found it, you decided to invest it. You can either inject lam in a one-time bond with a given maturity and wait by the sea for the weather, or be a little puzzled by the use of the ladder.

When you ladder your million, you divide it into several parts, for example, by 5. Then invest each part in bonds with different maturities: the first kopeck piece in bonds with one-year maturities, the second in bonds with two-year maturities, the third in bonds with three-year maturities, and so on. This results in a scheme where you receive coupons every year, plus the maturity of bonds by a given date. It's convenient, but not enough for our Napoleonic plans.