Investments in dollars or rate in pesos?

Alternatives in pesos

discount bills: They are titles issued by the national Treasury to finance expenses, with a maturity of less than one year. Yield between 70 and 83% of TNA, depending on the term. Taking into account the risk of an exchange or reprofiling, this rate does not pay too much premium over fixed terms (which pays 75%). But the advantage over them is liquiditygiven that can be sold whenever you want. They are not very attractive either, given that they barely beat inflation.

Letters adjusted by CER: They are issued by the Treasury, also with terms of less than one year. Unlike the previous ones, they adjust principal and interest by the CER coefficient, which incorporates inflation. In other words, the investor is left covered against loss of purchasing power product of inflation. Now pay a premium above inflation between 5 and 7% per year. They have liquidity in the secondary market.

UVA fixed terms: are term placements that They pay 1% annual interest above inflation.. The capital is adjusted by the UVA index, published by the BCRA. We are certain of the charges and They are 90 days. Sovereign risk is avoided, but liquidity is lost.

Mutual funds: are a patrimony made up of contributions from people who have similar profitability goals and risk profiles. They are managed by professionals, who seek the highest return, investing in different instruments (bonds, shares, ONs, fixed terms) depending on the objective of the fund, which is known in advance and can be consulted in what is called the factsheet. They have liquidity from immediately to 48 hours and there is no certainty of the return that will be obtained since it depends on the salvage value. There are many options that go from money marketgoing by private fixed income, sovereign fixed income, even Argentine equity.

dollar alternatives

dollar banknote: you can buy and hoard in foreign currency, without earning interest. The purchase can be made without limits or taxes through the purchase and sale of assets listed on bag, respecting the parking. It is what is known as the dollar MEP (or CCL when we buy cable dollars to transfer abroad).

Mutual funds: the offer is wide and goes from dollar corporate bonds until fixed income from Latam countries. Most have liquidity 48 hours. The profitability is not known in advance since it depends on the exit value.

Negotiable Obligations: They are debt securities issued by companies that need financing. In return, they offer interest. At the time of issuance, the amount, currency, interest rate that will accrue (fixed or variable), the form and date of payment are specified. Before investing, the interest you will receive is already known.

dollars or pesos

The answer to the question: dollars or pesos? The same investor has it and depends on your expectations around the evolution of inflation and the exchange rate.

What we see?

• MEP gap vs blue high
• MEP vs official gap quite low.
• Government interventions that will deepen: Massa announced that he will urge the BCRA to buy bonds in dollars for US$1,000 million. We will have to see how this impacts the bond and MEP prices. We must wait if the purchases are moderate and gradual or abrupt. Whatever the case, the stock dollar will stop rising. It is not clear how they will do it, nor amounts, nor times. The measure generates a lot of uncertainty and arouses some suspicions about the moment in which they are announced.

It draws attention that This announcement comes after a tremendous rally that took place in recent days, especially on Monday, without reference market because it is a holiday in the US. It is also striking that it is being done now and not months ago, when parities were 25%. It seems only a measure to contain the dollar, rather than to improve the sovereign debt profile. With what will it be financed in a context where there are no dollars and we are going through a tremendous drought? It was not clarified either.