Laddering
Market basicsSplitting deposits across staggered maturity dates.
In plain terms
Something matures every year, so you never break a deposit early or reinvest everything at one moment's rates.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Reinvestment risk
Market basicsThe risk that maturing money must be redeployed at a lower rate than before.
In plain terms
A 7.5% deposit maturing into a 5.5% world. Laddering maturities blunts it.