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Friday, October 07, 2022

“Fixed duration of the bag” gives higher yield. Nation World News

After the Central Bank of the Republic of Argentina (BCRA) By increasing the interest rates on fixed deposits to 69.5% per annum nominal, the stock bond Is known “stock market fixed period“, began slowly to adjust to this new normality.

what is a stock bond?

A stock bond is a financial vehicle in which a Debt between private individuals in which the “market” arbitrates, The two main participants are the taker and the setter.

Whereas the taker is the one who requests money in return for paying the interest rate, the underwriter is the investor who deposits or lends money to collect such profit., Interestingly, the counterparties do not know each other, because the intermediary, as we said earlier, is the market, just like when we operate other investment instruments.

The main advantage of the bond is its security: The borrower cannot obtain more money than is left in the guarantee because “aforo” indicates that he has to borrow even less.,

new interest rates

Generally, the interest rates of both financial vehicles are quite similar, except in times of growth like the current one or when there is a lot of volatility and volatility, such as in the post-PASO 2019 week. Although, Slowly, they’re leveling off,

At this time, the nominal annual rate of surety is around 55%, generating an effective rate of over 70%.

Although it does not exceed a certain period, Apart from more security, it also has other advantages., For example, Allows you to make a small profit on weekends and/or holidays At times when the market is closed and financial assets cannot be bought and sold, as the minimum placement period is 1 day.

In this way, we can take advantage of the liquid balance that is available to us between paying for the services offered or while we wait for the stock market to operate.

It is important to remember that, in order to hold money in escrow, it is sufficient to open a major account at a broker regulated by bull market brokers such as the National Securities Commission (CNV) and deposit the desired funds.

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