Barbell portfolio
A holding built from very short and very long issues with nothing in the middle.
How to read the number
It carries the same average duration as a portfolio of intermediate maturities but behaves differently: it gains when the curve changes slope and loses when the curve bows.
When the metric lies
The structure needs constant rebuilding: the short leg keeps maturing and has to be replaced at rates nobody knows in advance.
Also known as: barbell, dumbbell strategy