Comments on: Long Bond Pain http://www.mebanefaber.com/2009/05/28/long-bond-pain/ Stock Market and Investing Blog of Mebane Faber Tue, 11 Oct 2011 15:24:53 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: johnanus http://www.mebanefaber.com/2009/05/28/long-bond-pain/comment-page-1/#comment-4372 johnanus Sun, 31 May 2009 09:36:31 +0000 http://www.mebanefaber.com/?p=1350#comment-4372 looking at that makes my bunghole (NAS: ANUS) pucker. looking at that makes my bunghole (NAS: ANUS) pucker.

]]> By: johnanus http://www.mebanefaber.com/2009/05/28/long-bond-pain/comment-page-1/#comment-2560 johnanus Sun, 31 May 2009 04:36:31 +0000 http://www.mebanefaber.com/?p=1350#comment-2560 looking at that makes my bunghole (NAS: ANUS) pucker. looking at that makes my bunghole (NAS: ANUS) pucker.

]]> By: morph366 http://www.mebanefaber.com/2009/05/28/long-bond-pain/comment-page-1/#comment-2559 morph366 Sat, 30 May 2009 13:35:45 +0000 http://www.mebanefaber.com/?p=1350#comment-2559 Gerry<br><br>Two issues on TBT - one is the day to day directional risk - after several good days a 5% setback is not too surprising<br>More serious is the long term decay of an inverse and leveraged ETF.<br>See<br><a href="http://seekingalpha.com/article/104703-explaining-inverse-and-leveraged-etfs" rel="nofollow">http://seekingalpha.com/article/104703-explaini...</a> 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…

]]> By: macclary http://www.mebanefaber.com/2009/05/28/long-bond-pain/comment-page-1/#comment-2558 macclary Sat, 30 May 2009 05:00:39 +0000 http://www.mebanefaber.com/?p=1350#comment-2558 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 ;-><br><br>@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. 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.

]]> By: Gerry Dantone http://www.mebanefaber.com/2009/05/28/long-bond-pain/comment-page-1/#comment-2555 Gerry Dantone Sat, 30 May 2009 00:28:53 +0000 http://www.mebanefaber.com/?p=1350#comment-2555 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.<br><br>What is its role, if any, in the Ivy Portfolio? 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?

]]> By: frank http://www.mebanefaber.com/2009/05/28/long-bond-pain/comment-page-1/#comment-2553 frank Fri, 29 May 2009 14:43:30 +0000 http://www.mebanefaber.com/?p=1350#comment-2553 yes, but look at the 1y, 5y, 10y, 15y performance of the 20y bond still a positive rout for the long bond. yes, but look at the 1y, 5y, 10y, 15y performance of the 20y bond still a positive rout for the long bond.

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