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zipjet

07/10/12 4:05 PM

#145256 RE: biomaven0 #145255

A good question is how a paired-trade of long these stocks and short these bonds could go wrong.



The "crash of some sort" that would concern me most is some jump in stock volatility - scaring people out of stocks and into bonds. Exactly the opposite of what you want for that pair.

That said I like the idea, provided you can short bonds. (But why not - borrow them and sell them just like stocks.)

ij