Whats the best way to short corporate bonds spreads?

Discussion in 'Financial Futures' started by Daal, May 6, 2007.

  1. Daal


    I'm not even sure there is a way to do it with futures but this seems the appropriate forum. I'm basically looking for a trade when all this low volatility world blows out and spreads explode
  2. (1) Via the ETF"s, you could trade TLT and/or TLH versus HYG and/or LQD. (2) In the scenario you describe, you could expect the yield curve to steepen. You could buy shorter-term interest rate futures and short-sell longer-term futures using eurodollars or T-note futures.
  3. Try the CBOT 10Y Swap

    it's called the TED spread... don't have the document handy.