Ask Your Advisor: Time to unwind… JPY/PHP asset swaps 

We’ve all been there – thinking whether it’s time to let go. This plays in different scenarios, even in investments such as the so-called Asset Swap.

The Asset Swap is one of Metrobank’s Financial Markets Sector’s innovative products. It enables clients to invest in select global sovereign and corporate fixed income securities or bonds using Philippine pesos (PHP). This allows clients to expand their investment universe and further diversify their portfolios.

In order to achieve this, the bank pairs the underlying bonds with derivative products that help determine the PHP equivalent of future foreign currency cashflows. But this also means that an asset swap is not as easily tradeable as any other standard bond.

Exiting an asset swap transaction – known as “unwinding” – involves terminatin