Long TBT for the very long period

Discussion in 'ETFs' started by SuperBanda, Aug 29, 2011.

  1. Hello,

    I would like to go long TBT (2x short 20 years treasury).

    Is there any contango implied in this instrument? I am scared of be right of my opinion (shorting treasuries), but being wrong in the instrument used.

    Many thanks!

  2. gobar


    compare tlt vs tbt and u will find the answer..

    but just for fyi any etf inverse or 2 time or 3 times are for short term only.. long term they r black hole..
  3. Since treasuries are have a positive carry and treasury futures being a forward on a treasury bond (ignoring the delivery option for a now), being short a treasury future means roughly you pay the coupon minus the implied repo. So, yes, it costs you.

    That being said, it's no reason not to short treasuries if you think yield will go up; However, you might want to look at DLBS, which, I think is a 'cleaner' format.

  4. esmjb


  5. TBT: new lows once again today.
    I think we'll hit bottom once the 10 year note rate is near zero.
    This is getting ridiculous.
  6. Crazy indeed.
  7. i think u may be long for 2-3 yrs before the big bond crash
  8. that is NOT true. they can lose money, they can also make money, it all depends on the way the underlyings move. Having said that, they lost money in our limited historical sample because of the way the underlyings moved in the past.
  9. Exactly. And TBT is up nicely today.
    Big Question is: bottom for US interest rates "in" ?

    If so, just short TBT puts for your remaining days on earth....
    a clear path to steady income.
    #10     Sep 7, 2011