Money Duration Neutral

CFA Level III Fixed Income
#1

What does money duration neutral mean? There are some examples on the curriculum which is explained in different scenario.

  1. Money duration neutral is when money duration of portfolio is approximately equivalent to benchmark money duration (I called in relative money duration neutral)
  2. Money duration neutral is when money duration of portfolio is approximately equivalent to zero, such as levered Butterfly portfolio (long wing money duration - short body money duration = 0, and i called it absolute money duration neutral).

Are my concepts right for money duration neutral?

#2

I like your names.

The curriculum is rather sloppy in their language. They often write “duration neutral” when they mean “(absolute) money duration neutral”.

#3

Thank you S2000magician, it just matters of context then.

Enlightened as usual!