Barbell Strategy

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Definition: Barbell Strategy

Barbell strategy is one of the many strategies in portfolio management. It is mainly with regards to the portfolio of bonds.

In Barbell strategy, the bond portfolio consists of bonds on two opposite sides of the spectrum in terms of their maturities. The portfolio either consists of short-term bonds or long term bonds excluding the intermediate term bonds.

This strategy is particularly useful during rising interest rates, as the short-term bonds would be rolled over at higher interest rates.




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