Tuesday, May 26, 2009

Long Bond Volatility

If you've been gone for 9 months, you've missed nothing... the 30 year bond is still at 4.4%... yawn.



Source: Yahoo

Posted by Jake at 4:41 AM
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2 comments:

  1. AnonymousMay 26, 2009 at 6:42 AM

    what i don't understand is how TBT is up only some 47%. i would have expected at least 150% on this magnitude. or i should say i don't understand who puts their money in TBT anymore?

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  2. JakeMay 26, 2009 at 6:58 AM

    TBT only promises the inverse returns on a daily basis. There is a huge problem with all these inverse funds as each round trip tot he same price in the underlying causes the double inverse funds to underperform.

    Just compare VNQ (long) and SRS (double inverse) for real estate the past year. They are both down..

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