How to trade RE and Credit Spreads?

Discussion in 'Index Futures' started by Sponger, Dec 21, 2006.

  1. Sponger


    Two questions for everyone:

    OK, this has nothing to do with intraday Dowmini or S&P mini trading - but I want to place a bet in my "longterm portfolio" on the following:

    1) Is there a way to place a trade on US real estate prices using futures? Is anyone out there trading any of the "housing/real estate" futures?

    2) Is there a way to place a trade on the junk bond / high yield credit spreads blowing back out, ie reverting to their mean? Again, using futures.

    If there is not a way via futures, what instruments might you suggest to accomplish this, or what is your favorite instrument in these scenarios? :confused:

    Your input is greatly appreciated!!!!
  2. instead of futures, you can use ETF's there's a very high variety of them.

    there are some real estate and bond etf's that might solve your questions.
  3. Sponger


    Thanks for the heads up!
  4. Short a high-yield bond fund, long similar duratioon treasuries?
  5. Sponger


    Traveler, that could work - if you can short the high yield bond fund to begin with.
  6. It won't be that great of a trade unless you can get a lot of leverage on the spread. Retail would be 2:1. And you'd have to pay out the interest diferential each month until it hits.