cash flow laddering - cacttc.org flow laddering - greg paden.pdf- a cash flow ladder can provide a...
TRANSCRIPT
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Cash Flow Portfolio Laddering
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Cash Flow Portfolio Laddering
• Transactions typically occur when securities mature
• Provides liquidity through maturing investments
• Minimizes investment activity • More fluctuation in security types due
to rebalancing when investments mature
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Traditional Cash Flow Portfolio Ladder
• A simple approach in creating a fixed income portfolio is to design an even cash flow across the maturity spectrum.
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Cash Flow Slopping Ladder
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The “Wedge” Cash Flow Ladder
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Wedge Cash Flow Profile
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The “Slope” affect of Cash Flow Ladder
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The Wedge: Shallow Slope
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The “Wedge” Cash Flow Ladder Advantage
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Advantages in any Interest Rate Environment
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Nevada County Maturity Range
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Projected Cash Flow-5yr Monthly
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Cash Flow Portfolio Diversification
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Yield Curve
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Putting Excess Liquidity to Work
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Cash Flow Portfolio Management