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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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