Bullet strategy

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Bullet strategy

A fixed income strategy in which a portfolio is constructed so that the maturities of its securities are highly concentrated at one point on the yield curve.

Bullet Strategy

In bonds, an investment strategy in which one takes a long position (that is, buys) medium-term bonds while taking no position in short-term notes or long-term bonds. A bullet strategy can be useful if prevailing interest rates for medium-term bonds are higher than either short-term or long-term. A bullet strategy is the exact opposite of a bullet strategy.