Bonds, Interest Rates & Exchange Rates
What are ladder and barbell bond strategies?
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A ladder strategy spreads bond holdings evenly across multiple maturities, aiming to secure liquidity as bonds mature in turn and to diversify interest rate risk.
A barbell strategy holds only short-term and long-term bonds and no medium-term bonds, seeking both the liquidity of short-term bonds and the returns of long-term bonds. With a barbell, long-term bonds that have become medium-term must be replaced periodically, which makes management cumbersome and can incur transaction costs.
This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.