RepliMagni wrote:MEZZANINE wrote:My favorite transaction ( not the most profitable but certainly most amusing ) was borrowing £3 mill off Barclays UK @ 0.8% and placing it in a fixed term investment with Barclays Singapore @ 2.3%. Free money, just wish the money was mine.
I take it that first loan was at a fixed rate too....otherwise that could have backfired badly. lol
It was a secured revolving loan facility tracking at 0.2% above Libor. Of £30 Mill we had security in place for I only drewdown & used £12 mill spread around and rolling over in a few different short term investments ranging from 1 to 12 months, The Barclays investment was biggest at £3 Mill and the longest at 12 months fixed term, fixed rate. It was a calculated risk but with the money I already made on short termers and since there was a clause to break the investment at any point with loss of interest to date, also the fact that revolving loans allow you to repay at months notice means at worst I would have broken even.
Im not even required to make a profit ( although I always do ) as investments are not our business, my job is just to minimise the interest we pay on loans, and ensure funds are available for construction, land and property purchases.
