Good way to short Muni bonds?

I'm trying to find a good way to short municipal bonds. I don't want to buy a packaged ETN or 'super short' as those supposedly only track intraday movements. I'm looking for a non dividend ETF or stock I can short through buying a two year put. Does anyone have any suggestions?

 
Best Response

Well I doubt you could purchase CDS (credit default swaps) on the munis. You'd need to be institutional to even think about purchasing, and even if you could they're aren't a ton out there for municipal bonds. Finding naked municipal bond insurance (getting the CDS, without also getting the bond itself) isn't easy... and if you could buy them, and found someone to get them from, the reality is they would be priced in such a way that it just wouldn't be worth it.

Your best bet would probably be to short the insurers themselves. The issue with that is you aren't the first person to have this sentiment, a great deal of the bearish opinion of these insurers has already been priced in. Municipal Bond Insurance Association (MBI) is one of the largest Muni bond insurer. Take a look at the past 6 months they've experienced. Eeek. So that ship has probably set sail already.

Last (but not least), you could just go after the exchange traded funds that correlate to the muni bonds you want to short. iShares S&P National Muni Bond Fund (MUB) is a good start for you to check out.

Patrick Bateman would eat Eddie Morra's lunch (and probably his brains).
 

Qui ipsam nihil occaecati ratione quisquam. Quo magnam aliquam culpa impedit. Labore minima totam deserunt quos nemo.

Et eius ducimus et sed consectetur. Eius explicabo minus molestiae assumenda numquam soluta laboriosam. Sit quia magnam et ut. Laboriosam nulla porro labore debitis debitis. Modi animi impedit neque dolore fugiat iusto et dolorem. Nisi vero ipsum voluptatum fuga qui vitae. Quo commodi dolorum earum delectus voluptatum.

Culpa quasi culpa consequatur alias quae voluptas suscipit. Autem eligendi quia at doloribus culpa aut. Exercitationem rerum architecto et totam.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”