Fixed term to one day: how it works and how much it yields

He fixed term of the bag or the stock surety is a key ally, both for companies and small investors, in a context of acceleration of inflation after the post STEP devaluation. Therefore, protect the purchasing power of money It is a challenge, so the question of savers, and in general of Argentines, is how to do to protect the purchasing power.

For August, private consultants already estimate a variation of more than 10% in the Consumer’s price index (CPI).

For all this, take advantage the tools offered by the capital market to try to hedge against rising prices is key at this juncture. Within this range of options, there is the stock suretyan instrument that can be a great ally right now.

What is a surety?

The stock market guarantees could be defined asthe fixed terms of the stock market” although, it is important to note that they have different characteristics. as well explained Giuliano RancatiCorporate IB Sales in Personal Portfolio Investmentssureties are investment operations ranging from 1 to 120 daysallowing to manage “short term liquidity“, Meanwhile he fixed term Look for short, medium and long term returns.

Return and risk: Guarantee yields are linked to short-term rates, being backed by the market, which reduces counterparty risk.

On the other hand, deposits in fixed terms are backed by the financial strength of the issuing entity and are covered by the Central Bank (BCRA) up to a certain amount.

Rancati explains that the yields of the surety They mainly depend on two factors:

• The interest rate supply-based market.
• The liquidity demand and the term of the surety.

For these reasons, the surety is positioned as a good hedging instrument, “since its horizon is very short-term,” adds Rancati. The surety allows manage liquidity in very short timesoptimizing the flow of surpluses, while the fixed term seeks a return over a longer horizon without much flexibility.

One-day fixed term: “the best ally”

The caution pay between 97 to 100 pointscomment to Scope, Nicolas Olive, from Rudolph’s research team. “The surety is the best ally for the person who wants to place their funds at a interest rate in a flexible and safe way”, says the analyst.

• Flexible: “because you can choose as term of 1 day to 30 / 90 days and “renew it the way you want, for example, set it to 7 days and renew it,” says Olive.

• Safe: “because it is a credit between privatewhich has a guarantee structure through liquid financial assets, which makes it shielded against any event”, such as a possible default, corralito or bonex plan, exemplifies Olive.

• In addition, the sureties are, like all stock market operations, guaranteed by BYMA. “Against a fixed term, which pays a few more points, the great virtue is the low risk it has, you receive less (approx. 20 points) but the risk is almost non-existent, compared to a fixed term that has the risks known to all”, Olive concludes.

Stock market surety: in which cases it is appropriate and what must be taken into account

These guarantees are especially Useful to meet working capital needs in companies. Compared to the alternative of investing in a Common Money Market Investment Fundthe guarantees offer substantial advantagesexplains the Graduate in Economics, Elena Alonsoto this medium.

First, they guarantee an interest rate, which contrasts with common funds that do not guarantee a specific rate, Alonso points out. In addition, they provide a “rapid availability of fundssurpassing in agility even fixed terms“.

As explained by the other analysts consulted by Ambit, even though rates may be slightly lower, for example, in the 101% or 104% range for a 30-day term,”the additional liquidity provided by sureties is beneficial“, asserts Alonso. Let’s see in which cases.

• This may be a more convenient option than the scale of fees proposed by a virtual wallet, since it allows you to “place your funds in escrow and take advantage of cash flows efficiently.”

• Of course, it is essential to take into account some factors. For example, an investor with limited resourcesyou should consider the minimum amounts of commissions, since they could affect the profitability.

• However, For businesses who seek to place their cash flows and compare investment alternatives, the sureties are a considerably more favorable option than traditional backgrounds.