Fixed income reinvestment rate risk

  1. Which fixed income Portfolio will have the lowest reinvestment rate risk? Ladder or Bullet?
  2. Also which portfolio will provide max protection against yield curve twists and non parallel shifts?
  1. Bullet

  2. Depends on what you mean by maximum protection


  1. 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