RHB

SHORT TERM INVESTMENTS (< 1 YEAR)

  • MTBs are short term discounted papers issued by the government to meet its short term working capital. MTBs are issued on a weekly basis with original maturities of 3-month, 6-month and 1-year
  • As a Principal Dealer, RHB Bank is a direct bidder in the MTB auctions
  • BNMN are short-term papers issued by Bank Negara for the purpose of managing liquidity in the financial system. They are issued regularly either on a discounted basis or fixed coupon basis
  • As a Principal Dealer, RHB Bank is a direct bidder in the BNMN auctions
  • These are short-term instruments issued at a discounted basis by Cagamas Berhad (National Mortgage Corporation), with maturities ranging from 1 month up to a year
  • The features of these notes are similar to those of the Malaysian Treasury Bills
  • They are redeemable at their nominal value upon maturity
  • CPs are unsecured short-term debt instrument issued by corporations to meet their financial obligations, typically for financing their working capital
  • These instruments are usually issued at a discount from the face value, with maturities less than a year. - NIF/RUF are revolving facilities governing the issuance of the CP

MEDIUM / LONG TERM INVESTMENTS (> 1 YEAR)

  • MGS are debt instruments issued by the Government of Malaysia to meet its long term development expenditure
  • The bond pays fixed rate coupon semi-annually and redeemed at par on maturity
  • Being part of the Principal Dealership network, RHB Bank is a direct bidder in the government bonds auction
  • In the secondary market, RHB Bank also provides two-way price for the benchmark MGS issues
  • Cagamas Bonds are debt securities issued by Cagamas Berhad (National Mortgage Corporation) to fund its portfolio of loans and debts
  • Cagamas Berhad purchases housing loans, industrial property loans, hire purchase and leasing debts from Financial institutions, selected corporations and the government
  • Cagamas Bonds are long term instruments which can be issued on a fixed rate or floating rate basis with original maturities of up to 10 years
  • PDS/MTN are bonds issued by corporations to meet their financial obligations as well as project financing. They can be issued on a fixed rate coupon basis, floating rate coupon basis, combination of fixed and floating coupon basis or zero coupon basis
  • The coupon can be paid quarterly, semi-annually or annually depending on the cash flow of the issuer
  • Under MTN, the facilities can be issued under bonds/CP or combination of both on a revolving basis with maturities not exceeding 7 years from the maiden issue
  • Floating Rate Notes also called Floaters, are bonds whose interest rates are usually adjusted according to the level of money market interest rates such as KLIBOR. A floater's coupon rate can be reset quarterly, semi-annually or annually and it provides protection against rising interest rates
  • Subordinated debts instruments or sub-debts is a bond over which another bond has priority in case of liquidation, which usually offer higher interest rates
  • Government guaranteed bonds are corporate bonds where the government stands as guarantor for the bonds
  • Non-Resident Ringgit MTNs refer to issuance of ringgit denominated bonds by a Non-resident such as foreign banks and Corporates

FIXED INCOME SALES & DISTRIBUTION

  • A Team of trained professionals who provides a two-way price quotation on bonds originally Lead Arranged by the Bank. This will provide some liquidity in the secondary market transactions and also for the purpose of bond valuation
  • A Team of trained professionals, who undertakes the function on behalf of the Bank to place out, sell down and distribute debt securities (Bonds, Notes, Commercial Papers etc) to strategic investors domestically and internationally
  • A Team of trained professionals who analyze Financial Data and related Fundamental Information for the purpose of providing better decision making framework to Dealers in selling Fixed Income instruments