A portfolio with a negative duration is called a 'duration-neutral portfolio' or an 'immunised portfolio', which means that if small interest rate fluctuations occur, the value of equity should remain unchanged.

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A portfolio with a negative duration is designed to be immune to interest rate fluctuations, hence the term "duration-neutral" or "immunised". As a result, changes in interest rates should not affect the value of equity in the portfolio.

A Portfolio with a Negative Duration Is Called a 'Duration-Neutral