Shorting Corporate Bonds

[mdl]

Does anyone know of a broker/platform that allows for shorting of corporate bonds? Is this something a smaller firm can do or is it just possible for large IBs and HFs?

 

[love2puck14]

Individual bonds only? Easy to short the bond etf's. Lqd hyg jnk csj. Just a few big ones that are easy to short

 

[mdl]

We're looking to short the actual corporate bonds not an etf. Not sure if it's possible at my size.

 

[love2puck14]

Not sure what your size is but if its a concern then your prob right that your too small. How about shorting individual preferred's?

 

[EquityGuy4321]

You need a prime broker (who can do the repo) who is willing to take you on as a customer. Kinda tough if you are small size. I would suggest Merlin (my impression is that they sort of cater to smaller accounts).

 

[mdl]

Do most of the introducing brokers (the one's that clear GSEC) allow this?

 

[Bob111]

just curious-why you want to short corp bonds? spreads on most of them are huge..liquidity is close to zero..unless you expect that the company will go bankrupt? but then it's better\easier to short stock. to play yield curve? there is better instruments for that.
maybe i'm missing something here..

 

[mdl]

Just structral arb trades - occasionally in more liquid bond names the more senior claims look over-valued compared to the equity.