Investments in Money Market
Investments in Money Market
These are debt securities that represent the right to:
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 trust, 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 have a surcharge 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 basis points for those securities issued after 2003.
These are debt securities which represent the holder’s individual stake in a group credit, under the responsibility of the issuer, in 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 issuance.
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 resulting from the spread 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 basis points for those securities issued after 2003.
These are medium term promissory notes that circulate in the stock market and are subscribed by a company. They may be indexed at the current exchange rate or may be issued in national currency.
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 issuance.
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 have a surcharge 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 through over the counter markets.
Legal Regime: 50 interest rate basis points for those securities issued after 2003.
These are debt securities that represent the right to:
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 trust, 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 have a surcharge 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 basis points for those securities issued after 2003.