上一主题:unlevered Beta?
下一主题:Futures/Forwards Credit Risk
返回列表 发帖

Barbells Vs. Bullets

In simple words, why barbells are preferable when long term rate to decline and short term rate to increase?

long bonds are more sensitive to rate declines than short (aka it increases in value more and vice versa) therefore, long bonds will go up more than short bonds go down.

TOP

I agree. Barbell produces capital gains on their long term bonds due to lower interest rates and reduces reinvestment risk on the short term bonds due to increase in short term rates

TOP

返回列表
上一主题:unlevered Beta?
下一主题:Futures/Forwards Credit Risk