Novos contratos de arrendamento com maior queda desde a pandemia

[Ulisses Pereira]

"Shorting Bonds Still Will Not Work"

By James J. Cramer
11/14/2003 02:25 PM EST


"These bonds are so cooperative. If they were stocks, you'd say, "hey, they don't go down on bad news and they go up quickly on good news." Except bonds live in the Bizarro world.

Given that lots of funds take the other side and press them, I wouldn't be surprised if some of the price action stems from the need to cover by hedge funds who are shorting Treasuries or buying their derivative puts. (I see some people making that trade on Street Insight.)


Intellectually, I love that trade. We are printing dollars, rates are too low, the economy is hot and one day the commercial and industrial loan market has to heat up. (Doesn't it?)

But the reality is that on weak news the bonds soar, and there is a lot of mutual fund fear that could put a bid in underneath.

In other words, the trade so many want to do -- short bonds -- still isn't working. "

(in www.realmoney.com)