I have one question regarding reading 20, exhibit 65. In this part of the reading, we compare a “less extreme” barbell portfolio to a laddered portfolio and change the yield curve in order to see how the performance of those portfolios reacts.
In general, my understanding was that a barbell portfolio outperforms if curvature increases. This is consistent with the summary in exhibit 67. Anyways, in exhibit 65 the opposite is the case. Can someone explain why, please?
Thank you very much in advance!