Singapore's AAA Bills Offer an Opportunity for US Carry Trade
Some of the safest assets in Asia offer investors a yield pickup to Treasuries in the wake of the US losing its last AAA credit rating.
Investors looking to rotate out of the dollar and into Asia can buy securities issued by the Monetary Authority of Singapore, which is using them to steer the amount of cash in the banking system. Three-month MAS bills offer yield of about 13 basis points over similar-tenor US government debt when currency-hedging costs are taken into account, according to data compiled by Bloomberg.
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