Goodbye fixed term deposits?: what are the best alternatives on the market to put your dollars to work

He Fixed-term deposits have lost their appeal this year compared to inflation, but in recent days there has been a rebound in this traditional instrument investment due to the slowdown in prices in the economy and a gradual improvement in the rate applied by banks in line with an improvement in credit. However, there are some investments that are more attractive today because they have a little more risk, but pay better interest.

He recent collapse of global markets At the beginning of the month, a strong dose of volatility was injected into the investment landscape, with some more conservative savers turning to liquidity or the safest assets offered by the market. Thus, in this turbulent environment, a new trend has emerged the need to recalibrate strategies and seek the most profitable and low-risk options to put performance on autopilot those dollars that have been able to be saved in this most complex economic context.

Negotiable obligations

And it is that although Argentine stocks and bonds show signs of rebound, there are other instruments on the market that are presenting themselves as a more attractive option due to the slowdown in price dynamics. And under the umbrella, always, that Dollars under the mattress lose purchasing powerbecause although inflation in the US compared to that of Argentina is very low, it still impacts the greenback in real terms.

Isabel Botaproduct manager at Balancehe says in dialogue with Scope that for the more conservative profiles, there are Negotiable Obligations (ONs) issued by companies with high credit quality“These investments offer attractive rates above US inflation, allowing the value of capital to be preserved and a positive return to be obtained.”

Among the outstanding companies, Bota mentions the corporate bonds of Pan American Energy by 2032which have an Internal Rate of Return (IRR) close to 8%, “ensuring this attractive performance in the coming years for a company of its caliber.” On the other hand, the new ON of Telecom by 2031 offers even higher performance, “with an IRR of almost 10% in dollars, in a very similar period“.

Short term: where to direct dollars

Thus, for clients looking for short-term investments and interested in the wind and renewable energy sector, Bota suggests Genneia’s ONThis corporate bond, which has already begun to repay capital, has a maturity in 2027 and offers an IRR of just over 7.5% in hard currency.

Balanz’s strategist recalls that all the corporate bonds mentioned require a minimum investment of US$1,000 face value. And since it is not an amount for all investment profiles, there are also other options for which a smaller capital is required, such as Balanced Fund Savings Dollarswhich allows you to start with just u$s100.

Bota explains that this market-leading corporate fund is not only ideal for smaller investments, “but also gives access to Negotiable Obligations of companies such as Transportadora de Gas del Sur (TGS), Pampa Energía and Tecpetrol”which could not be acquired individually due to their high minimum requirements. “This allows for increased diversification and access to instruments that would otherwise be out of our reach. This fund expects an annual dollarized return of 7.5%“, says the analyst.

And for more experienced investors?

For a more dynamic profile interested in public debt, the BOPREALES are a good option, as they offer attractive returns. For example, Bota recommends the BPY26, “which currently offers an IRR of over 24% in dollars.” If a constant flow is sought, the strategist analyzes, there is a BOPREAL for that investor profile: the BPJ25, with an IRR close to 9%, which amortizes in dollars monthly, paying until June 2025 8.3% monthly.

It should be noted that BOPREALES are debt securities issued by the Central Bank (BCRA) during the current government and maturing in the same period, which gives them greater resistance to volatility compared to sovereign bonds.

The crypto option cannot be missing in portfolios

From Goodbitpoint out to this media that stablecoins have become an attractive option for Argentines looking to dollarize quickly and easily. Dollarizing via stablecoins also provides the opportunity to keep these assets invested to generate a return without assuming greater risks, “nor devalue the dollars due to US inflation“.

“Unlike Bitcoin, which is an asset with significant volatility, stablecoins offer stability, making them more accessible to those who wish to avoid exposure to high risks,” the exchange says.

And the difference between Buenbit and other crypto exchanges is that it offers “the most competitive interest rates on the market for those who choose to invest in stablecoins“. In addition, those who participate in this exchange’s loyalty program can access even more attractive rates, boosting their savings significantly. “For example, the current yield of USDC is 7% per year, with loyalty it can reach up to 11%. USDT is 5% per year, with the program it reaches up to 9%.“Thus, these returns exceed the US inflation rate.

This investment option is ideal for clients looking to protect their savings tied to the US dollar and receive a daily return. Therefore, conservative and moderate investors look to stablecoins as a great opportunity.

All of the aforementioned alternatives may be attractive for those seeking to regularize their assets following the current whitewashing process. In this first stage, cash can be regularized and will be available until 09/30/2024. In addition, it is free for any amount, as long as the funds remain invested until 12/31/2025 inclusive. “We believe that it is an excellent opportunity to make the capital that is currently inactive and losing value profitable, with the possibility of not only integrating it into the system, but also generating profitability,” concludes Bota de Balanz.