The call of the Minister of Economy, Luis Caputoto the banks to consider the Treasury Capitalization Bills (LECAPs) as the reference for the yields of fixed terms instead of the monetary policy rate established by the Central Bank (BCRA)caused some noise and an intense debate in the midst of what could be called the first exchange rate run triggered in May.
Analysts explain that the Government is seeking to change the banking investment landscape, trying to establish LECAPs as the new market benchmark instead of passes. The main objective of this move is to eliminate the remunerated liabilities of the organization headed by Santiago Bausilli and to promote investment in investment instruments. government debt.
Currently, many fixed terms are still linked to passes, whose rate has been drastically reduced by the BCRA until reaching 40% annual nominal, equivalent to an effective monthly return of 3.3%. In contrast, LECAPs offer a return of 4.2% in the short term. Despite this, banks continue to offer rates below 3% in some caseswhich has led to a migration of savers towards the dollar and a consequent pressure on the prices of foreign currencies.
The interest rate
The Government’s objective of reducing interest rates is intended both to dilute the BCRA’s liabilities and to make Treasury Bills more attractive. This movement is expected to gradually transfer funds from fixed terms to the debt instruments of the Ministry of Economy. However, It is important to keep in mind that LECAPs, although they offer higher returns, carry greater risk compared to instruments backed by the BCRA. The M
As savers, it is crucial to look for the best investment alternatives to safeguard our funds. The Treasury has managed to establish an attractive yield curve with the LECAPs, offering rates ranging between 3.3% and 5.4% monthlydepending on the terms ranging from 20 days to 290 days.
savings fixed term finance investments interest rates
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In this scenario, banks raise funds from fixed terms, paying savers rates of approximately 2.5% per month, and then invest those funds in LECAPs at the rates mentioned above. A LECAP works similarly to a fixed term in terms of offering a specific rate and term at the time of investment. Despite price fluctuations, if we hold our investment until maturity, we will receive the agreed rate.
It is worth remembering that today, these operations can be carried out both through our bank and through stockbrokers or AALyCs.
According to last week’s closing prices, we could acquire a 21-day LECAP with a monthly rate of 3.7%, or a 46-day LECAP with a monthly rate of 3.7%, among the shortest options. For intermediate terms such as 81 and 126 days, we would obtain rates of 3.9% and 4.24% monthly respectively, while for the longest terms of 263 and 294 days, the monthly rates would be 5.4% and 5.8 % respectively. These figures demonstrate the attractive potential of LECAPs as a solid and profitable investment alternative for conscious savers.
