Without the possibility of buying dollars in banks to save, companies look for financial alternatives to dump their liquidity and escape inflation
The limitations for dollarize the leftover pesos Due to the strict exchange rate, it generates that Business they should think carefully about what financial instruments they must dump their surplus money, and not lose to movements in the dollar, inflation and interest rates.
For this reason, the management of the liquidity, and in what to invest temporary surpluses.
In this way, the horizon investment and risk tolerance that have the signatures are the two main variables that will determine which instruments will be suitable to invest.
In this sense, iProfessional he consulted Roberto Geretto, chief economist of the CMF wholesale bank, to recommend which financial tools are preferred by companies at this complex time in the country, in which no one wants to keep the weights “parked” in the safe.
In this regard, this expert recommends various possibilities that companies of all sizes and sectors have to make money with pesos leftovers:
-Money Market Common Investment Funds (FCI MM):
Those companies that have excess very short term liquidity, because they know that in a few days they will need to pay certain commitments, such as salaries, AFIP, among others, Money Market Mutual Funds “They are a traditional option,” Geretto says.
Based on his data, on average, he claims that you can get a 25% nominal annual rate (TNA), since the idea of these FCIs is to provide very short-term remuneration.
“As you can see, the low return offered does not make them suitable for longer-term investments, where more than the return these funds prioritize the security and liquidity“sums up Geretto.
-Ledes November and December:
For those who have an investment horizon by the end of the month or December, the Discount Letters (LEDs) they are an option to consider.
According to the economist’s testimony, LEDs are a kind of very short term bond, where they offer a return of 37% TNA in the case of issuance to November and of 39% annually for version a December.
To acquire these papers, it is only necessary to have an account open in some Stock Exchange Society and sufficient funds to purchase them.
-Letters and Fixed Terms Adjusted for Inflation:
For companies that think of a horizon a little further and do not have a compelling need to use their weights urgently, they can consider a date to February of the next year.
“In this decision, the protection of savings against inflation. Therefore, Inflation Adjusted Bills (Lecer) are a good option, “says Geretto.
Unlike the Ledes, the Lecer has the CER-adjusted capital, similar to what a fixed term adjusted for inflation would be. In fact, this is another alternative.
In the case of fixed terms adjusted by UVA, It is important to remember that for you to pay the inflation plus a 1% premium, it is necessary to immobilize capital for 90 days.
“In the case of the Lecer, these papers can be bought or sold in any moment, as long as there is a market. Like all the instruments that are being mentioned, it is only necessary to have an account open in a Stock Market and to have sufficient funds, “Geretto clarifies to iProfesional.
If the company’s strategy is to invest the weights beyond early next year, bonuses adjusted by CER they are the main option recommended by economists.
“Short bonds like TX21 (due to August 2021) offer returns of CER plus 1% award. As we extend the life of the chosen bond, the returns offered are higher, but also the volatility of the voucher “, alerts Geretto.
For example, he cites that long stretch of the CER curve has returns of almost 8% more inflation, where the highest return is “compensation of the higher volatility in the bond price, and also because they are less fluids than, for example, the TX21 mentioned “.
One of the points that this economist emphasizes, when buying these bonds, is that it is of “utmost importance that the autonomy measurement of inflation made by the INDEC“.
-Hard Dollar Bonds:
In the same vein, for a long investment horizon, the Sovereign bonds Argentines in dollars They are a “risky but high-return option to consider” for companies seeking to get a return on their liquidity.
For example, him Global bonus with expiration to the 2030 (GD30) is a dollar-nominated security with New York law, and can be purchased through the Stock Exchange.
“This implies that in case of purchase with excess pesos, the portfolio is dollarized, while accessing an instrument with US legislation, which always offers greater guarantees“Geretto maintains.
And he adds: “The other side of these bonds is that offer little rent (coupon payment), so the main profit, at least for the next few years, would be the capital appreciation. And of course, for this to happen, it is necessary that the macroeconomy improves and there is some ´catalystPositive for bonds, such as an agreement with the IMF“.
-Dollar Linked Bonds:
Finally, an option that is very fashionable in the market are the dollar linked bonds, because, although they are denominated in pesos, their profitability is established based on the official dollar price.
In the case of sovereigns, one that offers as return devaluation plus a 4.5% is the bond maturing in November 2021 (is named T2V1).
“The advantage is that before a devaluation you get a appreciation of capital almost immediate. The disadvantage is the famous effect Door 12´, where once the devaluation has occurred, if all investors go out to drink Profits at the same time his price it will be seen injured“Geretto concludes.
This role also loses much appeal in the unlikely event that Argentina can avoid a jump of the exchange rate.
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