LS SECURITIES announced on the 21st that it has launched a foreign currency repurchase agreement (RP) product that allows investors to earn a pre-agreed interest rate while investing in U.S. dollars. Foreign currency RPs are fixed-rate products in which customers purchase bonds held by securities firms and then resell (repurchase) them at an agreed price after a certain period.
This foreign currency RP comes in two types. The flexible type allows deposits and withdrawals for a minimum of 1 day and up to 30 days with a fixed interest rate of 4.00% per annum. The fixed type allows for a minimum investment period of 7 days and up to 365 days, offering interest rates between 4.05% and 4.15% per annum.
However, the revenue yield for foreign currency RPs is based on the contracted yield announced by the company at the time of deposit and may vary according to market interest rates.
Foreign currency RP transactions can be made from 9 a.m. to 3 p.m. on business days. The minimum transaction amount is $100. Transactions can be conducted through LS SECURITIES' home and mobile trading systems (HTS, MTS) or at its branches.
An LS SECURITIES official noted, "As high exchange rates persist, the utility of foreign currency RPs, which allow for short-term investment in quality bonds and offer excellent liquidity, is expected to increase."