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Corporate Treasury Solutions

Market Optimisation

Let us help you take advantage of market disruptions to give your finances a boost--from lowering your borrowing costs to enhancing your investment gains.

Market Optimisation

Utilise our suite of solutions to help you ride the waves of market upheavals.

  1. Borrowing and swapping of currencies.
  2. Swapping of bonds.
  3. Access to better funding, with borrowing and lending rates below corresponding interest rates.
  4. Maximising your investment gains.
  5. Overcoming the effects of negative interest rate currencies.

Our Solution

Scenario
ABC Company has a negative-yield deposit in Japanese currency (JPY). ABC wants to avoid the effects of negative interest, but it is required to hold onto the JPY and cannot sell it.

 

Our Solutions

With Maybank's help, ABC plans to swap JPY to USD, and to use the USD to buy commercial papers.

1. ABC enters into a 6-month JPY currency swap linked to XYZ Bank's commercial papers.

 

2. ABC uses the USD from the swap to buy XYZ Bank’s 6-month commercial paper, holding the credit risk of the commercial paper's issuer.

 

3. At the end of 6 months, ABC sells the commercial papers and swap the currency back to JPY as the predetermined rates.

 

4. In the process, ABC didn't hold any foreign exchange risk. By using this method, ABC gets a net yield of 1% versus a -0.25% yield if it held only the JPY throughout the 6 months.