CD Ladder Definition

CD Ladder Definition

What Is a CD Ladder? A CD ladder is a strategy in which an investor divides a sum of money into equal amounts and invests them in certificates of deposit (CDs) with different maturity dates. This strategy decreases both interest rate and reinvestment risks. A CD is an investment product that offers a fixed interest

What It Is, How It Works

What It Is, How It Works

What Is a Collateralized Debt Obligation (CDO)? A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. A CDO is a particular type of derivative because, as its name implies, its value is derived from another underlying asset. These assets