US T-Bills (3-12 months) to bridge PE capital calls?

Investing / Portfolios
1

I have to fund capital calls (in EUR) bi-anually as part of my co-invest program at my PE firm. I can use cash at hand, sell stock, lend against my stock portfolio short term or use cash parked in T-bills. My preference would be T-Bills as it has a higher yield than cash without the potential valuation swings of the stock portfolio.

Many of my US peers park their liquid cash in T-Bills or ladder them (e.g. re-invest every 3 month in the updated tbill).

Two questions:

  1. Is the return tax free in CH on maturity given the T-Bill is issued at below par and repaid at par (no interest) or in case of a sale before maturity?

  2. Hedging isn’t worth the hassle - currency exposure remains, however USD / CHF / EUR can go either way - thoughts?

What is your stance on US T-Bills for short term cash bridging and do you have better alternatives?

2

Why not EUR MMF or similar? Currency exposure would be problematic imo, for such a short term investment (regardless of tax treatment issue).

3

Why not just go for short term deposits? Insufficient guarantee coverage in case of a bank failure?

4

What instrument would you recommend? I am only familiar with the US ones, but I was made aware of that there are short-term “Festgeldanlagen” in CH.

5

Am not worried about a bank failure, also T-Bills are not bank dependent but state (US gov). What instrument were you thinking of?

6

No recommendation (I don’t have experience), but I noticed there’s some “similar to MMF” ETFs: https://www.justetf.com/en/find-etf.html?assetClass=class-moneyMarket&groupField=index&currency=EUR