The old adage of “don’t put all your eggs in one basket” holds true time and again for investment decisions. Portfolio construction is an important aspect of portfolio diversification, with ladders, barbells, and bullets being three of the main shapes a maturity schedule can take.

Portfolio diversification can take many forms, and all of these forms are useful in minimizing various types of risk in uncertain environments: interest rate risk, reinvestment risk, credit risk, event risk, and maturity risk, among others. Diversification via deliberate maturity schedules is one way to address interest rate and reinvestment risks.

Continue reading the full report (PDF)

About the author

Jody Lurie

Sr. Fixed Income Portfolio Consultant

Read more from Jody Lurie

For more information about Janney, please see Janney’s Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.

To learn about the professional background, business practices, and conduct of FINRA member firms or their financial professionals, visit FINRA’s BrokerCheck website: http://brokercheck.finra.org/