A better way to short bonds than TBT??

    Posted by zwyss on 17th of Mar 2011 at 04:50 am

    I am preparing myself for the expected rise in interest rates (or decline in bonds). I know that TBT is probably the best stock for that, but for longer term trades I don't like inverse funds and certainly not 2x funds. Is there an alternative to TBT, I suppose there are some bond futures?  What is the symbol? Do you swing trade futures by rolling over at the expiry to the next date?

     

    Thank you for answers

    You could short TLT. That

    Posted by frtaylor on 17th of Mar 2011 at 09:00 am

    You could short TLT. That way the degradation works in your favor.

    Isn't TLT 1x & not synthetic?

    Posted by lessarda on 17th of Mar 2011 at 09:27 am

    So I don't think there wouldn't be degradation either way. Shorting UBT / UST / LBND / SBND could add returns, as they are 2x and 3x.

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!