Summary of 🇵🇭 Bond Investment Strategies | Ladder, Bullet and Barbell Explained

00:00:00 - 00:05:00

The YouTube video "🇵🇭 Bond Investment Strategies | Ladder, Bullet and Barbell Explained" discusses the yield curve, duration, and the three main bond investment strategies of ladder, bullet, and barbell. The ladder and bullet strategies are designed to optimize liquidity and return, while the barbell strategy is designed to address long-term goals.

• 00:00:00 The yield curve and risk reward trade-off are used to help investors decide which type of bond to invest in. A shorter tenor bond offers a lower yield than a longer tenor bond, but has lower risks. Duration is also important, as shorter tenor bonds have a higher sensitivity to interest rates than longer tenor bonds.
• 00:05:00 The three main bond investment strategies are ladder, bullet, and barbell. Intermediate bond funds with shorter maturities are used in the ladder strategy, while medium-term bond funds and long-term bond funds are used in the bullet and barbell strategies, respectively. The ladder and bullet strategies are designed to optimize liquidity and return, while the barbell strategy is designed to address long-term goals.