The Short on Shorting Bonds

For the last few decades, if you asked when shorting bonds would be the trade of the year, you might get the classic response: when pigs fly. I guess we can say that pigs have been flying around in 2022—the short bond trend has been a big mover so far this year. Although rates have been increasing, few strategies are short bonds outside trend following. Historically, short positions have not worked out well for those who took them on.