Do you know how to structure your bond portfolio? When companies issue debt, for example, they put out a spread of maturities and coupons. It reminds me of setting out the spread when sportfishing for sailfish. You have your three lines through the outriggers, for example, on port and starboard with kites keeping them on the surface. You have a couple lines off the stern at high and low depths trying to work the water column. You spread out your options.
When it comes to your bond ladder, you want to put a portfolio together that provides income while controlling the two main risks, credit quality, and interest rates. Once you have your initial setup, then you have the flexibility to move as opportunities are presented.
Action Line: There’s a lot to this stuff. Fishing and catching are not the same species. Let’s talk.