- Which fixed income Portfolio will have the lowest reinvestment rate risk? Ladder or Bullet?
- Also which portfolio will provide max protection against yield curve twists and non parallel shifts?
Depends on what you mean by maximum protection
- The mandates also mention that the risk of fluctuations in the bond portfolio’s value due to non-parallel shifts and/or twists in the yield curve should be curbed. Steinberg is not sure which portfolio to opt for.
Options are Bullet/ Barbell/ Ladder