How to Build a Bond Ladder for Income

While stock prices typically rise and fall from year to year, bond prices have historically been quite stable. Yet 2022 is shaping up to be a year of infamy for fixed income. Since bond prices move inversely to interest rates, which have been rising rapidly, bond prices have tanked. The


iShares Core U.S. Aggregate Bond


exchange-traded fund (ticker: AGG), which tracks an index of U.S. bonds, is down 14% year to date.

However, the surge in interest rates has a silver lining: Investors have a chance to secure much higher yields. Trouble is, any further increase in interest rates, which the Federal Reserve is telegraphing, could lead to another tumble in the market value of bonds, offsetting any yield you lock in.

Source: https://www.barrons.com/articles/how-to-build-a-bond-ladder-51664383751?siteid=yhoof2&yptr=yahoo