barbell portfolio


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Barbell Strategy

An investment strategy whereby a portfolio consists predominantly or exclusively of bonds with very short and very long maturities. The investment strategy behind a barbell portfolio is to invest in high-yield bonds with long maturities to maximize return while also maintaining investment-grade bonds with short maturities to minimize risk and maximize liquidity.

barbell portfolio

A bond portfolio heavily weighted with long and short maturities but few intermediate maturities. Bonds with short maturities provide liquidity, and those with long maturities offer higher yields.
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To construct a barbell portfolio, first build your bar.
Create a Barbell Portfolio for Two Radically Different but Equally Likely Outcomes
In conclusion, CS First Boston senior corporate bond strategist, market research, Nasser Ahmad, recommended three themes for 1995 -- 1) sector selectivity -- defense, forest products, metals and autos to name four; 2) structures -- discount callables, thirty put ten securities and barbell portfolios of two and twenty year securities; and 3) overweighting industrials and yankees in the CSFB model portfolio.