Laddered Maturities Law and Legal Definition

A laddered maturity means a maturity pattern in which the maturity dates of assets-such as bonds and certificates of deposits are evenly spaced. Therefore, laddering maturities provides a strategy for maximizing return while minimizing risk. Over time, as the assets mature, they provide a steady source of liquidity or cash flow. It helps to reduce the risk of interest rate fluctuations and increases the portfolio's overall return. It is also called as laddering strategy.