Money Market Investments

Bank Securities

Promissory Note

A document signed by the borrower unconditionally promising to repay a loan under agreed-upon terms. Interests may be produced.

Counterpart risk for the investor: Depending on the soundness of the issuing company, as there is no specific guarantee. The investor may know the risk grade according to the rating received by security rating companies.

Term: Between 1 and 10 years.

Return on Investment and Interests: The companies are the ones who determine the interest rate to be paid for each case. Generally these interests will be paid every 28 days.

Marketability: Low

Possible buyers: Individuals or companies, national or foreign, and institutional investors (only if allowed by the legal regime that they are constituted under.

Liquidity: Medium, through an over-the-counter market.

Legal Regime: 50 interest rate base points for those securities issued after 2003.

Acceptances

It is a financial instrument through which the issuer makes an unconditional promise to pay a determined amount of money in favor of the beneficiary with the possibility of producing interests.

Counterpart risk for the investor: Depending on the soundness of the issuing company, as there is no specific guarantee. The investor may know the risk grade according to the rating received by security rating companies.

Term: Between 1 and 10 years.

Return on Investment and Interests: The companies are the ones who determine the interest rate to be paid for each case. Generally these interests will be paid every 28 days.

Marketability: Low

Possible buyers: Individuals or companies, national or foreign, and institutional investors (only if allowed by the legal regime that they are constituted under.

Liquidity: Medium, through an over-the-counter market.

Legal Regime: 50 interest rate base points for those securities issued after 2003.

Bank Bonds

These are bearer securities issued by long-term multiple banking institutions in order to obtain resources by means of which they obtain financing. 

Risk for the investor: These are guaranteed by the bank institution that issues them.  The investor may know the risk grade according to the rating received by security rating companies.

Term: Between 3 and 10 years.

Counterpart risk for the investor: The companies are the ones who determine the interest rate to be paid for each case. Generally these interests will be paid every 182 days. Furthermore, since the price varies in an over-the-counter market, capital gains may be obtained.

Marketability: Broad

Possible buyers: Individuals or companies, national or foreign, and institutional investors (only if allowed by the legal regime that they are constituted under)

Liquidity: Medium

Legal Regime: 50 interest rate base points for those securities issued after 2003.

Cedes (Fixed Term Deposit Instruments)

These are instruments by which the issuer makes an unconditional promise to pay a determined amount of money in favor of the beneficiary with the possibility of producing interests. 

Counterpart risk for the investor: Depending on the soundness of the issuing company, as there is no specific guarantee. The investor may know the risk grade according to the rating received by security rating companies.

Term: Between 1 and 10 years.

Return on Investment and Interests: The companies are the ones who determine the interest rate to be paid for each case. Generally these interests will be paid every 28 days.

Marketability: Low

Possible buyers: Individuals or companies, national or foreign, and institutional investors

(only if allowed by the legal regime that they are constituted under.)

Liquidity: Medium, through an over-the-counter market.

Legal Regime: 50 interest rate base points for those securities issued after 2003.