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:
“Do you think that mere words are strategy and power for war?”
—Bible: Hebrew, 2 Kings 18:20.