PowerShares launches Treasury Portfolio ETF suitable for collateral pledges

Jan 23rd, 2017 | By | Category: Fixed Income

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Invesco PowerShares has launched the PowerShares Treasury Collateral Portfolio (NYSE: CLTL), an exchange-traded fund tracking the performance of fixed and floating rate US Treasury securities with a minimum amount outstanding of $300m and a remaining maturity between one month and one year.

PowerShares launches Treasury Portfolio ETF suitable for collateral pledges

Dan Draper, Global Head of PowerShares by Invesco.

The ETF tracks the market value-weighted ICE US Treasury Short Bond Index, a performance reference which includes all US Treasury Obligations – US Treasury notes, US Treasury bills and US Treasury floating rate bonds. The index excludes inflation-linked securities, floating rate notes, cash management bills, and any government agency debt issued with or without a government guarantee.

It may act as a solution for institutional clients who need to post collateral including that needed to meet margin requirements. For retail clients, the fund provides a convenient, low cost option to access safe haven instruments such as US Treasuries with ultra-short duration.

Dan Draper, Global Head of PowerShares by Invesco, commented: “As an ETF leader, we’re always looking for new solutions to help institutional and retail clients navigate the evolving macro and regulatory environment. Money market reform will have an impact on US investors going forward, so we’re introducing this Treasury collateral ETF to help ease certain challenges on deck for our clients.”

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