The market expects a drop in interest rates. Investors rearrange their portfolios after the reduction of the crawling peg.
With the possible cut in interest rates by the Central Bank, many savers are reconsidering their savings strategy investment. The deposits to fixed term They lost their shine in recent months. Instead, the LECAPS (National Treasury Bills) They are positioning themselves as an attractive alternative.
“What we believe is that now, starting February 1st, the crawling at 1% which will be the anchor against inflation. Then a lowering of interest rates, the monetary policy rate and that of fixed terms will be announced, but it will not be in the same proportion because they will have to maintain the positive real rate, that is, the monetary policy rate, which yields a fixed term, has to continue to be higher than inflation and the devaluation rate, which will be 1%,” said Mariano Ricciardi, CEO of BDI Consultora, in dialogue with Ámbito.
And he added: “I believe that this is part of a medium-term plan that they are doing to lower the nominal value of both the economy and inflation, lower expectations, which is fundamental, and when they leave the stocks, maintain positive real rates to make it attractive. stay in pesos because if not, when the stocks are released, everyone will go out and buy unlimited dollars and today we have negative reserves, suppose new loans come, that loan will last very little.”
What are LECAPS and how do they work?
LECAPS are short and medium-term public debt instruments issued by the national government. These securities offer a fixed income that is maintained until maturity, regardless of changes in the market interest rate.
For example, if you purchase a LECAPS maturing in May 2025, you will enjoy a fixed monthly return until that date, even if the general interest rate drops.
Fixed term vs. LECAPS
- Fixed term: Currently, rates range between 28% and 33% nominal annually, with monthly returns ranging between 2.33% and 2.75%. However, they are subject to adjustments if the Central Bank decides to cut rates.
- LECAPS: Yields range from 20.22% for the long term to 35% in the short term. In monthly terms, this translates into rates that fluctuate between 1.7% and 2.92%. Its main advantage is stability: once purchased, the conditions remain unchanged until expiration.
How to invest in LECAPS?
To acquire LECAPS, you need an investment account at a bank or authorized broker. Then, you can search for the specific code of the security you are interested in (such as “S31E5,” which indicates expiration on January 31, 2025), make the purchase, and wait for expiration to receive the returns.
Why choose LECAPS?
In a context of potential lower rates and with guaranteed fixed returns, LECAPS emerge as a solid option to protect the value of money against inflation. In addition, they represent a safe alternative to diversify the portfolio, especially in times of economic uncertainty.
Source: Ambito
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