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.