How to short Treasuries

Discussion in 'ETFs' started by nravo, Apr 22, 2009.

  1. Here's a chart of PST, it looks like it's forming a double-bottom there, so now might be a good time to take a Long position in the security ... or prepare to short regular Bond funds.

    GL
     
    #11     Apr 23, 2009
  2. I don't know enogh about the product to answer your questions honestly, you'd have to investigate them further with your broker.

    Most likely they are used primarly as speculative instruments so you may run into that problem. In which you would have to:

    a) Actively manage your account by shorting the regular Long version of the ETF, or

    b) Create a "similar effect" by managing a portfolio of bond and stock index funds (Google "Couch Potato Portfolio").

    c) Find a mutual fund that engages in sophisticated bond trading strategies which includes shorting treasuries.
     
    #12     Apr 23, 2009
  3. nravo

    nravo

    You don't know what the negative daily compounding issue is with a lot of short and leveraged ETFS?

    And you're giving advice on here about ETFs?
     
    #13     Apr 23, 2009
  4. Is TLT the most liquid bond ETF?
     
    #14     Apr 23, 2009



  5. Correct, we both agree it is indeed The Yield, but NOT an ETF, as you stated earlier, it's ok to be wrong you know!

    el pollo
     
    #15     Apr 23, 2009
  6. trom

    trom

    I've been trying to figure out the best way to do this, too.

    Maybe long dated puts on TLT?
     
    #16     Apr 23, 2009
  7. Yes, I do know what the negative daily compounding issue is with a lot of short and leveregated ETF's, and no seeing as how I don't trade them, I don't know what are directly for the short-term inverse fund that I mentioned, that's why I said you have to speak to your broker.

    I'm posting information.

    It seems that there may not be a product for what you want to do, so, as you and the other readers can see, I took the time to make several suggestions to you as "work arounds".

    You're welcome.
     
    #17     Apr 23, 2009
  8. I know it as a the treasury yield.

    I also thought there was a security that could be traded simply that mimics its performance, but after doing the due diligence last night on Google, it turns out that there is not a security which can be traded so simply.
    ***
    Hope that answers both the question that you posted on this thread and your PM.
     
    #18     Apr 23, 2009
  9. Here's a repeat of my suggestions to the work-around of your problem.

     
    #19     Apr 23, 2009
  10. Do your due diligence next time before posting jibberish!
     
    #20     Apr 23, 2009