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iShares Cali AMT-Free Muni Bond Message Board

  • t2leap t2leap Apr 1, 2010 8:17 PM Flag

    This looks like a good candidate for selling short

    Anyone short here? Seems municipalities are going to be under a lot of pressure--with California a prime candidate for systemic failure.

    Any thoughts?

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    • this might be a dumb question, but how come tdameritrade won't allow me to sell this short? and why can't i find any etf that focuses on shorting muni's? Particularly california ones. can someone tell this dumbass how to short california muni's?

      • 2 Replies to traderduff
      • I tried shorting just about every muni ETF and Schwab won't let me either. I have some TBT, but i don't want to hold that for long since double/triple inverse ETF's lose so much value over time.

      • "can someone tell this dumbass how to short california muni's?"

        You can sell calls against a particular ETF; however (macro picture) don't be so sure CA or any other state but especially CA is just going to forget how to collect tax receipts & charge service fees and blow off paying interest on debt. Also on another note think twice about directly shorting a dividend paying instrument; equity, bond whatever; you have to pay the dividend while you hold the position. A buddy of mine did this with a mortgage REIT a coulpe years back, Annaly, which as luck would have it was one of the few MREITs to side step the blow up; needless to say he's having to work a little more know.

        good luck,


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