PDA

View Full Version : Profiting from the move in long term interest rates

DOTTT
03-21-2005, 08:58 PM
I strongly believe that long term rates are on the rise. Are there any investment vehicles that deal with long term rates? I know that the CBOE has options on the 10 and 30 year treasury note, but they seem extremely illiquid to me, is there anything else out there? Thanks.
RunDownHouse
03-21-2005, 09:24 PM
Do you believe you're the only person to think this?
tech
03-21-2005, 10:09 PM
[ QUOTE ]
I strongly believe that long term rates are on the rise. Are there any investment vehicles that deal with long term rates? I know that the CBOE has options on the 10 and 30 year treasury note, but they seem extremely illiquid to me, is there anything else out there? Thanks.

[/ QUOTE ]

You could short an exchange-traded bond fund, something like TLT.
Dan Mezick
03-22-2005, 02:01 AM
One convenient vehicle for backing that kind of opinion with money is:

PROFUNDS Rising Rates Opportunity 10 (10-year note, 100% inverse) (http://www.profunds.com/profiles/profile.asp?id=130)

PROFUNDS Rising Rates Opportunity (30 year) 125% Inverse (http://www.profunds.com/profiles/profile.asp?id=69)
Anadrol 50
03-22-2005, 04:11 PM
Those profunds look cool. I just wish they had lower minimums.
Ray Zee
03-22-2005, 07:31 PM
problem is we dont know WHEN it will happen. it will. so maybe the best thing is to sell your stocks and put the money in mm funds. this isnt a bang for the bucks but returns well and protects you at all times. also sell overpriced real estate and gold. hold the money to buy back in to real estate as people get foreclosed on, as thats the start of the return to lower rates.