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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“That is the way of youth and life in general: that we do not understand the strategy until after the campaign is over.”
—Johann Wolfgang Von Goethe (1749–1832)