# Immunization: Whats the best way to hedge my short interest rate exposure?

What's the best way to hedge a portfolio against a rise in rates? Portfolio: long bonds different maturities.

a) parallel shift b) convex shift (short and long term rise more than mid term)

How is it practically done? - Fixed income instruments? - Derivatives? - ETFs?

Thanks a lot.

For a more sophisticated approach, you can create a factor model, usually with $N=3$ factors, and compute exposures and hedges using that. But doing so is somewhat more complicated than the bucket approach without necessarily performing better.