How to trade RE and Credit Spreads?

[Sponger]

Two questions for everyone:

OK, this has nothing to do with intraday Dowmini or S&P mini trading - but I want to place a bet in my "longterm portfolio" on the following:

1) Is there a way to place a trade on US real estate prices using futures? Is anyone out there trading any of the "housing/real estate" futures?

2) Is there a way to place a trade on the junk bond / high yield credit spreads blowing back out, ie reverting to their mean? Again, using futures.

If there is not a way via futures, what instruments might you suggest to accomplish this, or what is your favorite instrument in these scenarios?

Your input is greatly appreciated!!!!

 

[trade4succes]

instead of futures, you can use ETF's there's a very high variety of them.

there are some real estate and bond etf's that might solve your questions.

 

[Sponger]

Thanks for the heads up!

 

[Traveler]

Short a high-yield bond fund, long similar duratioon treasuries?

 

[Sponger]

Traveler, that could work - if you can short the high yield bond fund to begin with.

 

[Traveler]

It won't be that great of a trade unless you can get a lot of leverage on the spread. Retail would be 2:1. And you'd have to pay out the interest diferential each month until it hits.