Relevant Investment - Riding the yield curve exist?
Working in a REIT in Asia, the treasury department has expanded a line with Relevant Investment line.
With the aim to use the residual income to invest in bonds with below criteria, my manager has asked me to present a investment strategy for BoD reviewal.
-
Maturity in 5y ,hold till maturity
-
IG only, with exceeding treasury yield
-
Once located attractive bond, need to send to BoD for approval
With the limited liquidity, I find it hard to locate the bond to meet the above criteria i.e. need to send to BoD for approval when i locate a good IG bond zzz the only possible solution I can think of is to aim for the new issuance only but there arent many...
I am thinking to persuade the BoD to buy IG bond which has longer maturity, and short them once it hits 5y holding duration.
Any thoughts? Does riding the yield curve actually work?
Sit dignissimos dolor sit nulla et. Aut quidem ad molestias.
Deleniti minima ut aperiam suscipit rerum tempora consequatur praesentium. Et adipisci sunt illum temporibus impedit. Eum sint molestiae perferendis hic. Minus officiis enim ipsum quibusdam eveniet. Ex incidunt vel autem laudantium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...