Credit Hedge Arbitrage

After a successful acquisition of a multifinance company in the year of 2006, and heavily restructured the company along 2007, Risenberg launched its first credit hedge arbitrage program. The purpose of the acquisition was to provide an efficient vehicle for Risenberg to develop and run its arbitrage system. The acquisition was a deal worth IDR 10 Billion (USD 1.1 Million). Risenberg partnered with another group of investors in the deal and had been approved by the Department of Finance of Indonesia.

By participating in the program, corporate investors are able to gain an opportunity in an alternative asset class that has a very low correlation to the traditional market (ie. stock and bonds). The program is able to deliver a fixed 11% – 14% annual return to participants. The program exploits a continuous arbitrage opportunity that exclusively accessible only by a small number of players in Indonesia’s interbank money market. This is a close ended investment program, will only be available until a IDR 50 Billion (USD 5.5 Million) is reached.

For more info on the program, please contact Risenberg at www.risenberg.com

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Cash is a Business’ Lifeblood

Cash is a business’ lifeblood. CASH, if managed well, a company will remain healthy and strong. Managed poorly, a company will go into some cardiac arrest.
When cash management hasn’t been considered an important issue, then the company’s short-term stability and it’s long-term survival might be in danger.
Today i have just found out that a poorly managed cash flows between branch offices might harm a business severely.
Will fix the issue immediately.
A first priority now.
Forming a centralized treasury system might be the answer. Some internet banking bridge between branch offices might need to be tapped. Klik BCA is the first choice but will study what the other banks might offer in this particular problem.
And some fresh cash injection might be needed too.
A very important lesson learned today.
‘Doohhhhh!!

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Interest rate arbitrage

We have just took over a small multi finance company. With a 27 Billion consumer credit portfolio, this take-over is an attempt to acquire a vehicle for an efficient interest rate arbitrage operation.

The take-over has been approved by the Ministry of Finance of Indonesia.

A renewal of credit agreement has also been completed with several banks who provide the liquidity for the company.

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