标题: Barbells Vs. Bullets [打印本页] 作者: LPoulin133 时间: 2011-7-11 20:08 标题: Barbells Vs. Bullets
In simple words, why barbells are preferable when long term rate to decline and short term rate to increase?作者: Iginla2011 时间: 2011-7-11 20:08
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.作者: NakedPuts2011 时间: 2011-7-11 20:08
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
