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Wednesday, August 22, 2007

Alternative Investment Vehicle

Last month, the government issued its latest 3 and 5 years RTB or retail treasury bills since it started doing so in 2001.

RTBs, according to www.mart.com.ph, are direct and unconditional obligations of the national government which primarily caters to the retail market or the end-users. The last issue's rates are 6.875% for the 3-year, and 7.125% for the 5-year. Not bad right? Yes, not bad compared to, say, time deposit rate. But compared to my 43% gain in BKD for holding it in just 45 days, THAT rate is very bad.

Source: http://www.mart.com.ph/rtb.php

The following links have some information on RTBs:
1. http://www.alliedbank.com.ph/insidesection.php?secid=193&secpid=1&level=2
2. http://www.asiatrustbank.com/Products_dtl.asp?cCat=1&cProdID=28
3. http://www.firstmetro.com.ph/news-releases/FMIC%20and%20BPI%20Raised%20P77.html
4. http://business.inquirer.net/money/breakingnews/view_article.php?article_id=78594

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