Overview

This active investment strategy to provide income by investing in US Treasuries that are laddered across consecutive maturities

About this Strategy

  • This laddered bond portfolio roughly equally weights treasury bonds by maturity rung to deliver a predictable source of income and principal
  • Proceeds of maturing bonds are reinvested into longer maturity, often higher yielding, bonds
  • The laddered bond portfolio is passively structured but actively monitored, meaning all bonds and the top-level portfolio characteristics are monitored to ensure the portfolio meets its objective of delivering consistent income to clients while managing risks

Investment Approach

  • US Treasuries and cash
  • Leverages AB’s proprietary technology to deliver a portfolio of securities within the stated maturity ranges of the portfolio
  • Ongoing, we monitor the holdings in the portfolio on a daily basis to ensure the portfolio’s characteristics remain in target ranges

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Fixed Income

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Risks To Consider

  • Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered, and the bond’s value may decline.

  • Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments.

  • Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value. 

  • Past performance does not guarantee future results. There is no assurance that a separately managed account will achieve its investment objective.

    Separately managed accounts are subject to market risk, the market values of securities owned will fluctuate so that your investment, when redeemed, may be worth more or less than its original cost.

    AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the manager of the funds. 

    AB mutual funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.

    Investment Products Offered:

    Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed

    The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P..