Rates & Bonds 4 MIN READ

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.

February 13, 2023By EA Aguirre

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(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.

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