Fixed Income Strategies

Barbell Strategy

Definition

What is Barbell Strategy?

A bond strategy concentrated in short and long maturities with little exposure in the middle.

Example in practice

The portfolio combines Treasury bills with ten-year bonds.

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A portfolio of debt instruments with maturities spread across regular intervals.

A bond strategy concentrating maturities around one target date.

A strategy matching assets and liabilities so interest-rate changes have limited effect on the ability to meet a future obligation.

The complete collection of investments owned by an investor or managed under one mandate.

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