Fixed Income and Currency Strategist

Gautam Jain, PhD, CFA

FX & Rates

<p>In this week’s Alpha Bites, we recommend receiving the 5-year rate in Czech Republic vs paying the 5-year rate in Poland via IRS. Poland’s rates have outperformed its regional peers on the back of the uber-dovish monetary policy stance of the central bank and the June CPI reading coming off slightly from May. We continue to find the nominal and real rates in Poland to be too low in comparison with other countries, particularly Czechia, and unlikely to sustain at current levels with inflation running hot on the back of easy monetary and fiscal policies.</p>

In this week’s Alpha Bites, we recommend receiving the 5-year rate in Czech Republic vs paying the 5-year rate in Poland via IRS. Poland’s rates have outperformed its regional peers on the back of the uber-dovish monetary policy stance of the central bank and the June CPI reading coming off slightly from May. We continue to find the nominal and real rates in Poland to be too low in comparison with other countries, particularly Czechia, and unlikely to sustain at current levels with inflation running hot on the back of easy monetary and fiscal policies.

Alpha Bites: Receive Czech 5y Vs Pay Poland 5y Rate

Czech Republic

A vanilla interest rate swap us an agreement between two counterparties to exchange cashflows (fixed vs floating) in the same currency. This agreement is often used by counterparties to change their fixed cashflows to floating or vice versa. The payments are made during the life of the swap in the frequency that is pre-established by the counterparties.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CZK 5Y (CKSW5 CURNCY)

Alpha Bites: Receive Czech 5y Vs Pay Poland 5y Rate

Poland’s nominal and real rates are very low compared with other countries, particularly Czech, and are unlikely to sustain with inflation running...

Gautam Jain, PhD, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)