What is Barbell Portfolio?

A portfolio with long duration and short duration bonds at both ends as opposed to bullet portfolio which consists of medium duration bonds. They may have close weighted average duration but their price behavior differ with unparallel curve shift.
 
It has been the most efficient bond portfolio structure in this recent rate hike cycle.
 
"as opposed to bullet portfolio which consists of medium duration bonds"

the bullet, barbell, ladder are structural descriptors and as such do not necessarily describe the duration (for ex. you can have a short, med, or long duration bullet portfolio)
 
Just wondering,

So they talk about Barbell vs. Bullet Portfolio's in the curriculum?

Thanks,
 
Patel,

You will not have to know the difference between a barbell and a bullet Portfolio...but be prepared to learn about duration (which, too many people confuse with weighted-ave-maturity).
 
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