barbell – BSIC | Bocconi Students Investment Club

Butterfly trades: Bet on sovereign bonds’ future term structure

Download PDF Introduction Following the article from two weeks ago on the barbell and the bullet portfolios, we combine those two strategies together in what is called “butterfly trade”, used by investors to profit mainly on parallel yield curve movements. This week’s US inflation figures hit hard investors’ confidence. Expectations Read more…

By BSIC, 4 years14 November 2021 ago

Markets

Barbell and Bullets: Fixed Income Portfolios for Turbulent Times

Download PDF Introduction Fixed income investments allow investors to generate steady cashflows in the future, diversify equity exposure, and lower portfolio volatility. Current inflationary pressures, tighter monetary policy, and concerns about the prospect of rising interest rates are making investors question how strategic exposure to fixed income securities can help Read more…

By BSIC, 4 years31 October 2021 ago