Re: How hedge interest rates?

"sinister" <sinister@[EMAIL PROTECTED]
> writes:

> How can an individual investor hedge against interest rate risk?
> 
> I might buy a house in the next year.  My read of the situation is that
home 
> prices will decline if rates increase, and the effect will be stronger
in 
> tighter, pricier markets with little undeveloped land (like the one I
might 
> buy into).
> 
> Are there any ways for an individual investor to hedge against interest 
> rates increasing?

You could sell short zero-coupon bonds of the appropriate maturity.

You might be able to buy puts on appropriate interest rate indexes
or puts on appropriate interest rate index futures.

Or depending where you live, you might be able to sell a Case-Schiller
housing price index future for your metro area and so hedge the price
change directly.

--
Rich Carreiro                            rlc-news@[EMAIL PROTECTED]
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