NZ 90 Day Bank Bill
What are New Zealand 90 Day Bank Bills?
The New Zealand 90 Day Bank Bill futures rate is a New Zealand benchmark indicator for short term interest rates. The New Zealand 90 Day Bank Bill contracts are effective tools for enhancing portfolio performance, reducing and managing risk and also for trading.
Uses of New Zealand 90 Day Bank Bills
A Bank Bill refers to a money market investment instrument, offered for a reasonably short time frame until maturity that usually ranges between 30 to 180 days. A 90 Day Bank Bill will normally be purchased by an investor at a discount to its expected value when it matures and as such making a profit.
Risks of New Zealand 90 Day Bank Bills
The risk involved in Bank Bills lie within the credit worthiness of the bank involved. Like Australia, New Zealand has four ‘big banks’, ANZ, ASB, BNZ and Westpac Banking Corporation (WBC). If traded outright, the risks are simply that the position will move against the expected direction the trader predicts.