barbell portfolio

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.
References in periodicals archive ?
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.