Shorting Japanese Govt. Bonds

Discussion in 'Other Investments' started by son of aurum, Apr 19, 2013.

  1. son of aurum

    son of aurum Member

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    Have you, are you considering this ?

    And how do you do it exactly ? How does it work ? Please don't answer " google it ". I want to hear from any SS members who have knowledge and experience in thes area of " shorting Govt bonds "

    Thoughts, tips, advice, links to any good sites all appreciated.

    I know Kyle Bass (very switched on fella ) has been talking about this for a while. With the recent doubling of the money supply in Japan, Now or very soon looks like a good time to short.
     
  2. LovingtheSilver

    LovingtheSilver Active Member Silver Stacker

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    You can short/long Japanese government bonds with IG markets, very simple to set up and deposit/withdraw funds.
     
  3. thatguy

    thatguy Active Member

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    JAPANESE GOVERNMENT BOND (JPY2000 mini contract)
    not called the "widow maker" for no reason.

    I think long UST and short JGB is the trade kyle bass keeps going on about. The saying the market can remain irrational longer then you can remain liquid is especially important here. Timing is crucial
     
  4. jparrie

    jparrie Member

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    The 'JGB" includes the 2, 5, 10 and 30 year bonds. If you had a US futures account you could trade them through your that broker. I use Tradestation and they have a 10 year Japanese bond traded through LIFFE. Commissions are quite big, and timing issues would mean that if I could I would use options on futures. Either way, it is expensive.

    https://globalderivatives.nyx.com/en/contract/content/33627/contract-specification

    Futures Options:

    http://www.tse.or.jp/english/market/eqderiv/option/e_option.html

    The UST is a basket of US bonds.
     
  5. son of aurum

    son of aurum Member

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    Cheers guys, i will look into all three suggestions. Figured it was a case of timing and substantial initial otutlay. Compared to most investments though, sounds very promising. Thanks once again.
     

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