EAST WEST EYES 15 BILLION FROM LTNCDs | Marvin Germo
East West Bank

EAST WEST EYES 15 BILLION FROM LTNCDs

By: Marvin Germo | January 29, 2018

EW poised to used funds for growth

EastWest Banking Corp., the 13th largest commercial bank in the Philippines in terms of asset size, intends to raise P15 billion by selling peso-denominated long-term negotiable certificates of deposit (LTNCD). The bank said that the issuance will be for diversifying its funding sources for liability management.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

To give you a little background, LTNCD is basically a security that offers higher interest rate compared to that of a regular savings account and government bonds. It is also quite similar to regular time deposits except it offers higher interest rates. While the former can be terminated before its maturity, the latter does not allow so.

It is considered a safe investment and is regulated by the Bangko Sentral ng Pilipinas (BSP). LTNCDs are insured by the Philippine Deposit Insurance Corporation (PDIC) up to P500, 000.00 and interest earned from it is tax-free. Since the security is negotiable, it can be traded in the secondary market before maturity date.

The offering to be made by the bank is still due for regulatory approval by the BSP that’s why no terms of the offering were yet disclosed.

Technicals

Looking at the chart below, the stock is bearish for the short, mid and long term. The stock has broken all near term support levels that has previously protected the stock from falling. All indicators and parameters are denoting a bearish undertone as of the moment and it would be good to avoid the stock temporarily if you are a quick and position trader. As of this point, we currently don’t have any buy signal for the stock. Should the breakdown continue, the stock could fall to as low as 27 for the short term.

 

East Wet Technicals

New book and other books on Investing, Business and Finance.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
Stock Smarts Book