After April’s inflation data, which reached double digits, the Central Bank (BCRA) The reference rate was lowered by 10 percentage points again, which remained at 40% annually. As established by the Communication “C” 97972 of the entity, that “is equivalent to a 49.15% annual effective rate (TEA)“.
Fixed terms, which had already been offering negative real returns, now reinforced this trend and most banks adjusted the rate to around 30% annually, which is equivalent to 2.5% monthly, far from 5% or 6%. % of inflation projected for the month of May. But on the market, a better alternative began to appear: lecaps.
What are Lecaps and how can you invest?
The Treasury Bills Capitalizable in Pesos (LECAPs) They are direct financing instruments for the National Treasury. This is the alternative to the LEBACsideal for conservative investors de short term with a good interest rate.
Something that is important to highlight is that although the fixed term subscription period is a minimum of one month, the Lecaps They are short term but the term is longer with October being the shortest term.
You can invest in LECAPs participating in primary bidding (financing directly to the National Treasury) or purchasing LECAPs in the secondary market through a Stock Broker.
The minimum amount to subscribe LECAPs is $10,000.- (ten thousand pesos), while in the Secondary Market they can be bought and sold starting at $100 Face Value.
Lecaps: why they are a better option
“We believe that the lowering of BCRA rates, together with minimum Lecap rates above, will make these securities attractive and we consider that the Treasury could cover the maturities given this rate incentive. The intention going forward seems to be to recreate a fixed Lecaps rate curve, although we reiterate that demand is conditioned by the existence of the strict exchange controls that still persist”considered Juan Manuel Franco, Chief Economist of the SBS Group.
This new scenario “it presents various investment alternatives, but for those who want to continue betting on carry, Lecaps today are the best option, with monthly rates between 3 and 4%,” assured Mauro Carrizo, Financial Advisor of Cocos Capital.
For Ezequiel Zambaglione, Head of Research at Balanz, “Lecaps stand out as an especially attractive option for a scenario where the Government program is successful, given that, if the BCRA achieves effective control over the aggregates and inflation collapses, the decrease in inflation would more than offset the need for real rates higher”.
What performance do Lecaps have?
The monthly yield is around 3% and 4.2% depending on the term. For the short term, Econviews continues to think “that in the next 3 months there is value in fixed rate instruments (Lecaps) and that for the medium or long section the preference continues to be the CER curve. As a selection of assets we feel comfortable with positions long-term in TX26, TZXD6 and TZX26”.
Source: Ambito
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