Forum » General » Inverse muni bond fund?

Inverse muni bond fund?

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Posted by buydow on February 20, 2010 (10:50AM)

Does anyone know of an inverse bond fund that deals in municpal bonds? 
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Posted by OldFart on February 20, 2010 (12:10PM)

Wow and I thought we have more than enough ETFs. At least I am not aware of inverse muni bond ETF. Inverse bond - yes, TBT being the most liquid example but not muni. I am afraid your two options are go short or puts if available
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Posted by incubus on February 20, 2010 (12:37PM)

OF, TBT is Proshares inverted 30 yr treasury, it's newly created long counterpart is UBT.
If you really want to make that play, take a look at Direxion's TMV / TMF triple leveraged 30 yr treasury ETF's.

Also, if you think there are a lot of ETF's out there now, wait till you see what's coming this year, Proshares has a new line of triple leveragerd ETF's, Direxion is planning to come out with triple leveraged ETF's that are rebalanced monthly instead of daily to mitigate the decay effect daily rebalancing has on them.
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Posted by OldFart on February 20, 2010 (08:03PM)

Agreed. There are enough options, long and short in the bond funds but no reverse muni bond ETF

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