Interest Rate Decreases in Argentina: Options for Savers to Make Smart Investments

by time news

2024-05-05 07:36:00

he Banco Central The interest rate in pesos decreased again this week and accepted 50%. This drags down the performance of virtual wallets and investment funds as well Fixed deadlines traditional.

Reducing the interest rate is a necessary condition clear liabilities from the Central Bank’s balance sheet, according to the diagnosis shared by the Government and the market. Once this first objective has been achieved, the authorities hope that they will be able to lift exchange restrictions.

Also read: Tax collection fell by 12% in real terms in April putting pressure on the Government to deliver tax reform

Meanwhile, the small savings You have few other options to get extra income from the pesos you may have left over after paying the monthly expenses. That’s why, TN market specialists were contacted to find out what the praises what they do for their clients.

1. Financial dollars

The decline in yields in pesos coincides with a season of a calm exchange, with a relatively constant gap. So, a possible way out for less sophisticated savers goes straight through dollarized.

The MEP dollar has increased by 7.8% so far this year, less than the 8.7% that the official exchange rate moved. (Photo: Stock Adobe).

“We believe that the most conservative people could option directly for dollarswith a monetary settlement that has been at the actual minimum levels since 2019, so it would be a bet for peace, even if the peso would really appreciate more for some time to come,” he said. Juan Manuel Francochief economist of SBS Group.

2. Bonds that adjust for inflation

Those who they must be in pesosbut wanting to preserve some of their purchasing power, they can make instruments tied to the option inflation (CER) or through the capitalization bills (Lecap) issued by the Government in the last debt offers. Between the two instruments, the ones that will adjust prices have better expectations among analysts. “We believe that Lecap rates are very low and we prefer CER these levels,” said Franco.

Also read: Fruit, vegetable and meat prices have fallen in the past week: what happened during the month of April

Oh Investing in the Stock Market (IEB)Meanwhile, they explained that the improvement in inflationary expectations was the result of a correction in the price of goods. CER bondswhich they had again positive rates for those expiring from 2026. On the other hand, they indicated that the path of inflation forecasted by Lecap looks too optimistic as it expects an average monthly figure of 3.3% for the second half of the year.

3. Seats and shares

For slightly riskier profiles, four They are still a good choice. They are the local representation of companies listed abroad, basically, i Wall Street. They are bought in pesos and from low amounts. Additionally, they move based on the cash price to settle.

cedears allows you to buy shares of companies listed in the United States in pesos. (Photo: Brendan McDermid/Reuters).

Nicolas Carreras, financial advisor of Wealth Management of Balanceconsider that the Cedears packages are becoming relevant Quant Selection I y II that they are available on their platform and include companies such as Eli Lilly, General Electric y Microsoft.

Also read: The Government will lower tariffs to import appliances and tires: the reasons

In the case of the Actions The locals, Carreras and Francos both mentioned the roles of the the energy sector as those who could benefit from the Government’s measures, in particular, the final sanction of the Coins Act and the results of the May Agreement.

4. Negotiable obligations

Also close to stocks, but with a definite returnyes negotiable obligations (ON). This is, corporate debt From the first line. Recently there have been several dollar issues with a fixed rate yield. Among them, Carreras emphasized the attractiveness of the ON of Vista Energy (VSCPO) until 2029, with an annual coupon of 8% and of Pan American Energy (PNCXO) to 2032, with an annual coupon of 8.5%.

5. Bonuses

There is still doubt about the payment of the bonuses Argentines starting next year. Therefore, it is vital that the Government finishes compressing the country’s risk to be able to reissue debt and refinance maturities. With these caveats in mind, for those looking to invest in Argentine securities, Franco sees value in world.

Minister Luis Caputo must reduce the risk of the country reissuing debt in the market. (Photo: press OPN)

“Our analysis indicates that the short end of the Globals (GD29/GD30) is heading for internal rates of return that are as high as those of Ecuador. There is an opportunity to raise (upside down), which could be higher if we move towards even lower rates. Having said that, the global context and possible volatility in international markets that could limit the increase in the short term must also be taken into account,” he said.

Subsequently, Carreras preferred bonds with shorter maturities, although he was not limited to the global ones but named the Bonares. In any case, he emphasized that they are other options for investors who have a more aggressive risk profile“.

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