DefinitionA barbell is a type of portfolio management strategy that mainly focuses on bond portfolios. A typical bond portfolio is made up of a spectrum that has bonds on each side of it. These bonds are classified by their maturity, long-term and short-term with the exclusion of the intermediate-term bonds. The barbell strategy is used when there is a rise in interest rates by rolling over short-term bonds at higher interest rates. NB: The name ‘barbell’ is ideal in the description of this strategy because on both sides of the spectrum are heavily weighted bonds, therefore, giving it the look…
Source: What is the definition of a Barbell in finance?
What is the definition of a Barbell in finance?