Commercial hedge against rising rates

Discussion in 'Financial Futures' started by stupididiot, Nov 7, 2007.

  1. stupididiot

    stupididiot

    Well, sort of.

    I have a 5/1 ARM that will reset Aug08. Plan is to sell enough EM and GE futs to cover my nut if rates increase. Nice contago right now. Selling Aug08 EM and Sep08 GE. Also sold a few calls on Mar08 GE.
     
    #1     Nov 7, 2007
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  2. psytrade

    psytrade

    How do you know they won't judge as you as a credit risk and hose you way beyond that hedge?
     
    #2     Nov 8, 2007
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