Ladder Portfolio
Method of investing that staggers the maturities of a group of bonds. As a bond matures, the investor can reinvest the proceeds in either short- or long-term bonds depending on the interest rate and economic environment at that time. For example, if interest rates are rising, the matured bond's proceeds can be invested in longer term, higher yielding bonds. As interest rates decline, higher interest rates would have already been locked in through the previous purchase of higher yielding bonds. As bonds continue to mature in a falling interest rate environment, the proceeds can be invested in bonds of shorter maturities, thereby having liquidity for future investment in longer maturity bonds if interest rates increase.
Popular Insurance Terms
Call on a prospective insurance buyer without a prior appointment. Many salespeople find this exercise the most threatening in their career development. Some observers attribute the ...
Individual or other entity who owns an insurance policy. Synonymous with policyowner. ...
Same as term Calendar Year Experience: paid loss experience for the period of time from January 1 to December 31 of a specified year (not necessarily the current year). ...
To transfer a risk from an insurance company to a reinsurance company. ...
Salesperson who markets and services insurance policies in the state in which he or she is domiciled. ...
Individual who has a contractual agreement with a policyowner. The agent of record has a legal right to commissions from the insurance policy. ...
Trade group of independent claims adjusters who settle claims for insurance companies on a fee basis. Some insurers use their own staff adjusters to settle a claim. Others use an ...
Phrase describing a form of joint tenancy ownership where property passes to the survivors when one party dies. ...
Rule that provides four requirements for monitoring the independent agent distribution system: The insurance company must be involved in the training of the independent agent. The ...
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