In finance, a Barbell strategy is formed when a Trader invests in Long and Short duration bonds, but does not invest in the intermediate duration bonds. This strategy is useful when interest rates are rising; as the short term maturities are rolled over they receive a higher interest rate, raising the value. The opposite strategy is referred to as the Bullet strategy.
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Famous quotes containing the word strategy:
“Our strategy in going after this army is very simple. First we are going to cut it off, and then we are going to kill it.”
—Colin Powell (b. 1937)