In a recent post someone fretted that there isn’t any way to short municipal bonds. I betting there isn’t as well but you never know. If we have a smart Freeper out there who knows how then he/she should spread that knowledge around.
Well, there is, but only as an indirect way. You could look for a muni bond ETF that has significant exposure in its portfolio to Chicago paper.
There are ways available to the big players (like buying CDS’) but those aren’t available to the retail investor.
There aren’t any inverse muni ETFs (yet), but you can short any of the many positive muni ETFs.