what are types of duration strategies 
in the financial press you may have heard investors and analysts discuss long duration or short duration strategies which can be confusing in a trading and investing context the term long would be used to describe a position where the investor owns the underlying asset or an interest in the asset that will appreciate in value if the price rises the term short is used to describe a position where an investor has borrowed an asset or has an interest in the asset e g derivatives that will rise in value when the price falls in value however a long duration strategy describes an investing approach where a bond investor focuses on bonds with a high duration value in this situation an investor is likely buying bonds with a long time before maturity and greater exposure to interest rate risks a long duration strategy works well when interest rates are falling which usually happens during recessions a short duration strategy is one where a fixed income or bond investor is focused on buying bonds with a small duration this usually means that the investor is focused on bonds with a small amount of time to maturity a strategy like this would be employed when investors think interest rates will rise or when they are very uncertain about interest rates and want to reduce their risk 