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.
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Maturity in 5y ,hold till maturity
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IG only, with exceeding treasury yield
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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?
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