Author: Investor Relations
Bond laddering is an investment strategy that involves purchasing bonds or debt instruments with varying maturities to create a steady income stream and mitigate interest rate risk.
How Bond Laddering Works
In a bond ladder, an investor allocates funds across multiple bonds with different maturity dates. For example, an investor might purchase bonds maturing in one, three, five, seven, and ten years. As each bond matures, the principal is reinvested into a new long-term bond, extending the ladder and maintaining the staggered maturity structure. This approach ensures that a portion of the...
Understanding Commercial Real Estate Debt
Understanding Commercial Real Estate Debt for Beginners
If you’re just starting to explore real estate investing, you might already know how a mortgage works for a home. But when it comes to commercial real estate, understanding the debt involved can feel more complex. Knowing how to evaluate the terms and risks of this debt is key to making smart investment decisions. This guide will simplify the basics of real estate debt, covering key metrics like coverage and leverage ratios, and introduce a few practical concepts to get you started.
The Role of Debt in Real Estate Investing
Before diving...
GinkgoVest Investor 2024 Survey
Unlocking Insights: Key Findings from Our Recent Survey
At Ginkgo, we’re committed to understanding and enhancing your investment journey. As part of this effort, we recently conducted a survey to gain deeper insights into the preferences and strategies of our investor community. We’re excited to share the key findings:
1. Strong Interest in Private Real Estate
How much of your overall portfolio is allocated to private real estate investments?
Our survey revealed that over 50% of respondents have allocated between 10% and 50% of their portfolios to private real estate...
Understanding Net Asset Value (NAV)
The Net Asset Value (NAV) per share is a crucial metric used to determine the market value of a fund and its shares on a specific date. It serves as a basis for setting the purchase and redemption prices of shares.
As an investor, grasping the concept of NAV per share is essential. It allows you to track the value of your investments over time, ultimately providing a metric of performance relative to other investments.
What is NAV?
NAV is calculated using a simple formula:
NAV = Total Assets−Total Liabilities / Number of Shares Outstanding
For instance, a real estate fund’s...