why do investors ladder bonds 
one reason investors ladder bonds or buy individual bonds of different maturities and reinvest in new bonds as each matures is to take advantage of the fixed income cash flows they offer when held to maturity laddering protects against market price risk the risk that their price will drop as interest rates rise since an investor doesn t plan to sell the bonds it also helps manage reinvestment risk since the investor reinvests proceeds from each maturity back into the longer term bond higher yield end of the ladder 2