No. of Recommendations: 0
Dear Fools,

Does anyone know of a bond fund that can be shorted? I tried to short TLT and IEF at Etrade but they said they could not borrow the shares.

Thanks, Louis
Print the post Back To Top
No. of Recommendations: 1
Does anyone know of a bond fund that can be shorted? I tried to short TLT and IEF at Etrade but they said they could not borrow the shares.

Sounds like every TLT and IEF share at Etrade that can be shorted, already is.

Hedge
Print the post Back To Top
No. of Recommendations: 3
Instead of shorting TLT you can buy TBT which is an ultra short of TLT, i.e. 2X. Same for shorting IEF, you can use PST (another ultra short, ie. 2X).


Rich
Print the post Back To Top
No. of Recommendations: 0
Another thing you might look at is Rydex Funds' Inverse Govt. Long Bond Strategy Fund (RYJUX)

http://www.rydexinvestments.com/products/mutual_funds/info/o...

Note that buying a short fund is not the same as shorting a regular fund, or regular securities. It's not a short sale, and you don't have the unlimited upside loss exposure, and accompanying margin calls, that you do with a short sale.

Bill
Print the post Back To Top
Advertisement