With the FY ending, tax and tax evasion is on all our minds; with that, I've been thinking about CGT and its 50% discount.
If today I were to open a Long on say 3yr Bonds, then force open a short at around the same price (thus completely hedged),
Wait till 30 Jun 2010, then dispose of the winning position (say longs), and claim my 50% CGT disc. Then re-enter longs, to re-hedge.
and on 1st Jul 2010, get out of shorts and claim the full capital loss.
Would that just be some free capital loss credits? Equal to 1/2 the total move of bonds during the time. (eg $100->CGT disc $50 gains; and full $100 loss)