Money Market Investments

Private Instruments

Negotiable Instruments

This is a loan security (promissory note) through which the issuer promises to pay the holders a certain amount of money upon its maturity date.

Counterpart risk for the investor: The risk implied by these instruments is valued by a security rating company, who considers the issuer’s payment capacity, its liquidity and the guarantee supporting the issue.

Term: The issuing company determines the term according to its needs, without exceeding 360 days.

Return on Investment and Interests: The issuing company will place the instrument at a discount rate and will grant its holders a return produced from the differential between the purchasing price and its nominal value (if the investor keeps the instrument until the maturity date) or its selling price (if the investor decides to sell before it matures).

Marketability: Medium

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.

Stock Certificates

These are loan securities which represent the holder’s individual stake in a collective loan, under the responsibility of the issuer, within the stock Exchange market.

Counterpart risk for the investor: The risk implied by these instruments is valued by a security rating company, who considers the issuer’s payment capacity, its liquidity and the guarantee supporting the issue.

Term: The issuing company determines the term according to its needs.

Return on Investment and Interests: The issuing company will place the instrument at a discount rate and will grant its holders a return produced from the differential between the purchasing price and its nominal value (if the investor keeps the instrument until the maturity date) or its selling price (if the investor decides to sell before it matures).

Marketability: Medium

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.

M.T. Promissory Notes

These are medium term promissory notes that circulate in the stock market and are subscribed by a company. They may be issued based on national or foreign currency (determined by the current Exchange rate).

Counterpart risk for the investor: The risk implied by these instruments is valued by a security rating company, who considers the issuer’s payment capacity, its liquidity and the guarantee supporting the issue.

Term: The issuing company determines the term according to its needs; it ranges between 1 and 3 years.

Return on Investment and Interests: The issuing company may freely determine the return rate, which will generally be above other net yields offered by government instruments.

Marketability: Medium

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.

Cpo´s

These are security instruments that represent the right to:

  • A proportional part of yields produced by securities, rights or assets of any class, which the issuing company holds in an irrevocable trusteeship established for such purposes.
  • A proportional part of property, asset, right or security ownership.
  • A proportional part of the net product resulting from the sale of said assets, rights or securities.

Counterpart risk for the investor: Although the issuer is a credit institution or private company, its only obligation is set for the amount of the fiduciary property, represented by personal property contributed to the trusteeship.

Term: between 3 and 8 years.

Return on Investment and Interests: The issuing company may freely determine the return rate, which will generally be above other net yields offered by government instruments.

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

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