DOWNLOAD
Time to invest in 3-month asset swaps on US treasury bills
If you are an investor with short-term peso investment needs, consider these asset swap ideas.
By EA Aguirre
This article is exclusive to Metrobank preferred clients.
Log in your Wealth Manager account to get access to investment insights, bank views, and webinar videos.
(Updated as of February 17, 2023) Investor clients with excess peso funds may consider participating in US dollar-denominated fixed income securities by entering into an asset swap (ASW).*
It is a type of structured investment wherein clients buy foreign currency security while simultaneously entering into a cross currency swap (CCS).
In particular, US treasury bills have seen a recent pickup in yields with 3-month tenors increasing by as much as 40-50 basis points (bps) over the last two weeks.
Previous indicative pricing last January 31, 2023.
