Not that I know much about bond ETFs, but both JNK and HYG have already had a recent fall. That is, perhaps I have missed the boat to open a short.
HYG's low of ~86.5 in June 2012 seems a long way off, and it is only ~16% below the present close of 91.55. At least the daily volume is relatively high on the ARC exchange, and I get 10% margin on my platform.
SJB, which is the inverse, is not far above the 12 month low, which is tempting, but the low daily volume is enough to scare me off. But the clincher for me with SJB is that I don't get any margin via my platform.
In summary, and from a complete novice's perspective, I suggest that there are better methods to take advantage of rising interest rates such as the volatility ETFs for example. I am out of my depth on this topic, but with QE ending, the threat of the 'considerable time' before interest rates not being as 'considerable' as many thought previously, I suspect that the VIXY, VXX, and UVXY ETFs will have more upside compared to shorting JNK or HYG. However, as always I am searching for new and improved trading ideas, hence, I am happy to be proven wrong.
