Schwab Launches 3 Bond Ladder Strategies
The bond ladders include six-month, 12-month and 24-month investments that can be held in SMAs.
Schwab Asset Management is launching three short-duration U.S. Treasury bond ladder strategies managed by its Wasmer Schroeder Strategies team.
The new bond ladders include six-month, 12-month and 24-month strategies that seek to offer an efficient and effective way to generate income and help mitigate interest-rate risk, the firm announced today.
The new offerings are available through a separately managed account portfolio structure and have a $250,000 minimum investment.
The Wasmer Schroeder Strategies’ bond ladder portfolios reinvest the proceeds each quarter as bonds mature, eliminating the need for investors to manually reinvest proceeds, Schwab said, adding that the strategies offer a competitive price point starting at 15 basis points.
“We are excited to expand our Wasmer Schroeder Strategies offerings with new short-duration Treasury bond ladder strategies that provide a great way to generate income with a focus on stability of capital,” said David Lafferty, director of product strategy and development, Schwab Asset Management.
“With investors more interested in fixed income than they have been in years, we are pleased to deliver new offerings that truly make it easier for investors to take advantage of a laddered strategy,” Lafferty explained.
The new strategies build on Wasmer Schroeder Strategies corporate and municipal bond ladder portfolios, which have $4.8 billion in assets as of June 30.
The corporate and municipal ladders have seen increased demand this year, adding $1.3 billion in new assets in the first half compared to $1.9 billion in all of 2022, Schwab said.
Photo: Shutterstock