[Verse 1] When you're building bond portfolios, there's choices you can make Different ways to spread the maturities for your client's sake Three main strategies to learn, each one has its own way Bullet, barbell, ladder - let me teach you today [Chorus] Bullet shoots straight to one spot, concentrated tight Barbell lifts both ends up high, short and long unite Ladder climbs step by step, evenly spaced right Three yield curve strategies, now you've got the sight [Verse 2] Bullet strategy focuses on one maturity range All your bonds cluster together, duration doesn't change If you think rates will fall right at that certain time Bullet hits the target and your returns will shine [Chorus] Bullet shoots straight to one spot, concentrated tight Barbell lifts both ends up high, short and long unite Ladder climbs step by step, evenly spaced right Three yield curve strategies, now you've got the sight [Verse 3] Barbell takes the opposite approach, spreads wide apart Short-term bonds on one side, long-term counterpart When the curve is steep or flattening you expect Barbell captures both ends with profits you collect [Chorus] Bullet shoots straight to one spot, concentrated tight Barbell lifts both ends up high, short and long unite Ladder climbs step by step, evenly spaced right Three yield curve strategies, now you've got the sight [Verse 4] Ladder builds up gradually, each rung a different year One bond here, one bond there, the pattern's crystal clear When rates are changing constantly and you're not sure which way Ladder keeps you balanced through each trading day [Bridge] Rising rates hurt long-term bonds Falling rates help them respond Bullet bets on just one zone Barbell hedges, two-way grown Ladder spreads the risk around Three strategies, now you're bond sound [Chorus] Bullet shoots straight to one spot, concentrated tight Barbell lifts both ends up high, short and long unite Ladder climbs step by step, evenly spaced right Three yield curve strategies, now you've got the sight [Outro] Remember bullet, barbell, ladder when you trade Each strategy serves its purpose in the choices that you've made
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