Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Ways to Be Short LT Treasuries
Old 06-15-2010, 10:57 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Ways to Be Short LT Treasuries

This is not for immediate deployment, but for readiness.

To me it is absurd how low interest rates are now. If the US government were not funding the entire mortgage industry, and buying it's own debt via the Federal Reserve rates would quickly rise. Now may not be the time, as there is still much fear of continuing deflation. When this fear abates, here we go.

The promising ways I can think of are:

1)A direct short in the T-Bond Futures Market, or a put on T-Bond futures. (futures markets).

2) A short on TLT, an iShares LT year bond ETF, or a put on this issue

I don't like short ETFs or mutual funds, or double short, etc, as they appear to have a downward bias built into their design. Maybe shorting a 2x or 3x ETF might be good, for the reason mentioned for not wanting to be long this type of issue.

Any comments?

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-15-2010, 11:13 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
definately a possibility. I think the most efficient way to do this is via the futures market if you are willing to trade futures. Otherwise TLT options.

The other thing that comes to mind is a short of one of the agency mortgage REITs. NLY comes to mind, as most of their securities are 30 fixed pass-throughs financed with short term repos.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 06-15-2010, 11:40 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Quote:
Originally Posted by brewer12345 View Post
definately a possibility. I think the most efficient way to do this is via the futures market if you are willing to trade futures. Otherwise TLT options.

The other thing that comes to mind is a short of one of the agency mortgage REITs. NLY comes to mind, as most of their securities are 30 fixed pass-throughs financed with short term repos.
Thanks Brewer.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Plain Talk About Treasuries haha FIRE and Money 7 03-07-2009 05:43 AM
Bonds but no Treasuries? DektolMan FIRE and Money 10 01-08-2009 03:48 PM
Ten Year Treasuries yakers FIRE and Money 6 06-13-2007 01:38 PM
Laddering- CD's vs Treasuries Gearhead Jim FIRE and Money 14 08-31-2005 03:48 PM

 

 
All times are GMT -6. The time now is 10:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.