Madison offers laddered corporate bond strategies in three maturity structures (1-3 year, 1-5 year and 1-10 year) with diversified maturities throughout the portfolio. Proceeds from maturing bonds are used to purchase securities at the longer end of the maturity structure, which creates the potential to protect income and capture higher yields as issues mature. The strategies’ low turnover can also reduce overall transaction cost.
Each ladder is constructed using a combination of top-down macroeconomic research, sector valuation and credit analysis. We continually monitor these factors to help avoid risks inherent in passively managed strategies.