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Perpetual Treasuries, who may not have perpetual profits for much longer, today said that they managed to generate record profits for the last financial year as a result of taking favourable positions in the bond trading market, most significantly the position of Central Bank Governor.
A spokesman for the company, one who is not related to the former Governor Arjuna Mahendran said, “The bond market is very competitive and we were looking for suitable arbitrage opportunities to take advantage of fluctuating yields. Our research led us to try and find advantageous positions earlier on in the trading chain and we then realised that as a primary dealer, we had the opportunity to get in early on in the game. Our competitive advantage came from taking the position of Central Bank Governor and making sure he was working in our favour.”
“Of course, we knew the Mr. Mahendran ‘relatively’ better than some of the other primary dealers which meant we made a killing in the market. We are trying to get another good position this year in the bond market although the current Governor is not familiar with us. Nor does he have kids we can get one of our staff to get hitched to,” he added.
As a result of the scam, the company has said it has reclassified Mr. Mahendra on the Balance Sheet from being an asset to a liability.
