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Ladder Portfolio
A portfolio of bonds that mature in equal amounts over a specific period of time.
Leading Economic Indicators
Economic series that tend to rise or fall in advance of the rest of the economy.
Leverage
Increasing the return on an investment through borrowing or special contract terms. Using borrowed funds to maximize the rate of return on investment.
Leveraged Portfolio
A portfolio that includes risky assets purchased with funds borrowed.
Liability Swap
An interest rate swap used to alter the cash flow characteristics of an institution's liabilities so as to provide a better match with its assets.
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