Halister News

(Bloomberg) -- Nomura favors receiving 2- and 3-year interest rates swaps in Singapore and Thailand as they provide one of the highest Sharpe ratios in the region, says rates strategist Vivek Rajpal.

• “It looks like we are still in a low vol world,” after Jackson Hole turned out to be a non-event to the markets, he says
• “Stable global yields, low volatility and high real rates in many places in the region make me believe that positive carry bias will perform”
• From a medium-term perspective, low inflation in the Asian region and better liquidity in the banking system will push yields lower, especially at the front-end
• Broad short dollar environment helps capital flows into Singapore and Thailand, adding liquidity in their banking systems
• NOTE: SGD 2-year interest-rate swap drops 4bps to 1.35%; THB non-deliverable IRS slides 4bps to 1.43%
  • SGD 2-year IRS offers a carry and roll-down gain of 7.9bps over three months, THB 5.6bps, according to Bloomberg data

To contact the reporter on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui