Barbell strategy

(redirected from barbells)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.

Barbell strategy

A fixed income strategy in which the maturities of the securities included in the portfolio are concentrated at two extremes.

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 strategy.

When you use a barbell strategy, you invest equivalent amounts in short-term and long-term bonds, creating the shape that gives the strategy its name. The goal is to earn more interest than intermediate-term bonds would provide without taking more risk.

For example, you might buy a portfolio of bonds, with some that mature within a year or two and an equal number that mature in 30 years. When the shorter-term bonds come due, you replace them with other short-term bonds.

It's a different approach from laddering your bond investment, often with a portfolio of intermediate-term bonds, so that your bonds mature in a rolling pattern every few years.

Mentioned in ?
References in periodicals archive ?
The Barbells for Boobs grant program provides funding to breast centers nationally as a resource for thousands of men and women who do not qualify for government funding or other charitable resources in the detection of breast cancer.
IN A major development, shortage of barbell sets forced the Indian Weightlifting Federation ( IWF) to send home four of the Commonwealth Games ( CWG) core group senior lifters from its ongoing camp in Bangalore on Friday.
You use a barbell and start with seven full curls, followed by seven half- curls from the bottom to waist height and finish with seven half-curls from waist height to the top.
To understand this motion in a two-atom molecule, for instance, it helps to envision the molecule as a barbell, with each weight representing an atom and the connecting bar representing the bond between them.
When you're rocking the SMARTBAR barbell and weight plates, you know you are using the same high-tech equipment used in professional gyms and clubs everyday.
THE Indian Weightlifting Federation ( IWF) has threatened to shut down the ongoing training camp for the 2010 Commonwealth Games as the lifters are faced with an acute shortage of barbells.
Sitting on a chair inside the exercise room at the Santa Clarita Athletic Club, she lifts a barbell above her head.
Hazard: The weld between the bracket and the pin that holds the barbell bracket in place on a weightlifting rack can break, causing the weights to fall, and posing an injury hazard to consumers.
The look like an inverted pyramid on two toothpicks," said Darwin Takkinen, Chief Engineer for New York Barbell.
Her own fitness regimen includes twice weekly weight-lifting sessions using dumbbells, barbells and machines.
Its sleek, chrome-plated design and display stand provide you with "functional art" as well as "functional fitness" and eliminate clutter caused by cumbersome exercise equipment and bulky barbells.
Every other day I had to stand with a stick and two heavy barbells attached, above my head.