# Bond Ladder

*Markets & Instruments — Finicade finance glossary*

A bond ladder holds bonds maturing in consecutive years, so a portion matures every year and is reinvested at whatever rate then prevails. It converts a single, badly-timed bet on interest rates into an average across many, and it produces predictable cash for spending. The cost is complexity and slightly lower yield than concentrating at the sweet spot of the curve; the benefit is that neither rising nor falling rates can hurt you all at once.

**Also known as:** laddering bonds, CD ladder

**Related terms:** [Bond](https://finicade.com/glossary/bond), [Maturity](https://finicade.com/glossary/maturity), [Reinvestment Risk](https://finicade.com/glossary/reinvestment-risk), [Duration](https://finicade.com/glossary/duration), [Certificate of Deposit (CD)](https://finicade.com/glossary/certificate-of-deposit)

Source: https://finicade.com/glossary/bond-ladder