How would you hedge against a particular equity/bond under current market conditions?

Answer 1

There are a number of ways in which you could do this. For bonds, you could buy Credit Default Swaps on them. These would hedge against the default risk. For hedging the interest rate risk, you could use interest rate swaps such that you pay fixed rate and receive floating rate.

For equities, you can hedge by buying call options or selling put options. You could also hedge by selling stock futures.

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