Combined with the tender offer in the first quarter and additional open market debt repurchases, the Company reduced its outstanding debt by over $900M dollars and extended the remaining maturity
of the portfolio an additional two years.
Had the Treasury fully awarded the P15 billion in debt paper with a remaining maturity
of six years and five months, the annual rate would have jumped to an average of 8.284 percent from 7.085 percent during the previous auction in September.
Meanwhile, we expect China's basic balance of payments to remain in surplus in the next three years, while the short-term foreign currency external debt by remaining maturity
would stay below 30% of accessible foreign exchange reserve over the same period.
HWG actively manages its asset-liability mismatch gap by replacing bonds that have short remaining maturity
terms with longer term bonds amid its rising liability duration due to regulatory changes.
A key challenge is that the remaining maturity
of the bond pile declines over time, so the ECB will have to decide whether to target longer-dated bonds or to accept the natural ageing of its portfolio.
Submitted bids for the bonds-with remaining maturity
of six years and eight months-averaged 6.621 percent, 64.5 basis points higher than the 5.976 percent fetched by the securities in its previous reissuance.
Further, during the wind-up period the fund may deviate from its investment objectives and policies and may invest up to a 100% of its managed assets in high quality, short-term securities with a final or remaining maturity
of 397 days or less.
- Expand KTB-backed RPs: Ease maturity requirements for KTBs to guarantee RPs, from KTBs with at least five years of remaining maturity
to KTBs maturing later than the time of repurchase
However, the outcome for the Sukuk notes would be uncertain, and would depend on the remaining maturity
of the notes, the performance of the reference collateral and the actions of the regulatory authorities in a bankruptcy scenario.
* The remaining maturity
of an investment at acquisition may not exceed 397 days.
The SECP Thursday allowed the Islamic mutual funds to include the government of Pakistan IjarahSukuk not exceeding 90 days remaining maturity
in cash and near cash instruments requirement.