If you were to make a major investment how would you use futures?

Assume that the yield curve is strongly upward sloping and you believe that yields are at very low levels in September 2011. How would you use interest rate futures to hedge a prospective borrowing of funds in nine months? If you were to make a major investment in nine months, how would you use futures?|||Depends on the borrowing that you wanted to do. If you believed that interest rates were going to go up, you would short June 2012 Eurodollar futures which would lock in an interest rate for 3 months. If you needed to borrow money for longer than that you could short also a Sept 2012 ED future and lock in interest rates for 6 months, and so on.





For the investment part, I would buy a June 2012 futures contract in whatever I was going to invest in in 9 months.