At Invesco, we pride ourselves on producing tailored, comprehensive solutions that meet our clients’ needs, whatever they are. So when a global bank, based in the Netherlands, approached us with a negative yields issue, we were well positioned to help.
European regulations introduced after the 2008 financial crisis mean that nowadays, banks must keep many of their assets invested in highly liquid, low-risk securities. Because of a renewed commitment to low interest rates, yields are persistently low.
The bank felt that the answers could lie in adjusting its €100 billion high-quality liquid asset (HQLA) portfolio. In this case study, we explore how Invesco Indexing supported the bank’s treasury team explore its theory.
Utilising a wealth of experience and a depth of resources, gain a unique insight into how we were able to develop an index strategy that would turn the fortunes of the bank’s investments, produce consistent positive yields and satisfy regulations.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
Where Paul Jackson or András Vig have expressed opinions, they are based on current market conditions, may differ from those of other investment professionals and are subject to change without notice.