Investment laddering
Liquidity risk management - investment.
Investment laddering means making investments with different maturities with the intention of holding them to their full terms, producing a predictable stream of inflows from the series of maturing investments over time.
"What could be interesting is if the major central banks, including the European Central Bank, begin to diverge in the interest rate reduction programmes, as and when the process begins. This could create different investment landscapes in different jurisdictions. This changing landscape will create different opportunities for treasurers to add value as they look at areas such as investment laddering and making better use of cash forecasts to inform their investment or short-term borrowing decisions."
(Philip Smith, editor - The Treasurer - Issue 1, 2024, p30.)
