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View Comments to “Long Bond Pain” (Leave a Comment)

1. frank says:

   May 29, 2009 at 9:43 am

   yes, but look at the 1y, 5y, 10y, 15y performance of the 20y bond still a positive rout for the long bond.
2. Gerry Dantone says:

   May 29, 2009 at 7:28 pm

   I had been doing well with TBT (double short 20yr treasury) until today when it dropped 5+%. It's still above its 200 day SMA however.

   What is its role, if any, in the Ivy Portfolio?
3. macclary says:

   May 30, 2009 at 12:00 am

   Buying up US long bonds must be the ultimate contrarian play right now. Everybody loves to hate on the US bond market… Rates could definitely go up from here, but I don't think that there will be many safe places to hide if the rates go up dramatically. In that scenario a product like TBT or similar strategy could crumble at the seams along with such niceties as functioning markets and rule of law ;->

   @Gerry: I don't think that TBT is an asset class from my point of view. Off the top of my head; it could be used to hedge the risk of rolling a long bond portfolio to a new issue if the interest rates were expected to rise before an upcoming auction.
4. morph366 says:

   May 30, 2009 at 8:35 am

   Gerry

   Two issues on TBT – one is the day to day directional risk – after several good days a 5% setback is not too surprising
   More serious is the long term decay of an inverse and leveraged ETF.
   See
   http://seekingalpha.com/article/104703-explaini...
5. johnanus says:

   May 30, 2009 at 11:36 pm

   looking at that makes my bunghole (NAS: ANUS) pucker.
6. johnanus says:

   May 31, 2009 at 4:36 am

   looking at that makes my bunghole (NAS: ANUS) pucker.