How can I make money on the conviction that interest rates will rise other than:
- Buying real-estate
- Taking out a cheap loan and lending at a higher rate in the future
How can I make money on the conviction that interest rates will rise other than:
The "pure play" would be using interest rate options. http://www.cboe.com/Products/InterestRateOptionsSpecs.aspx
Another option is to short whatever interest rate you think will go up. For example, if you think that interest on treasuries will go up, then short treasuries.
A very simple and safe, though boring, approach is to hold cash rather than bonds, and move out of cash later once higher yields have lowered asset prices.