Solve Your 8 Biggest Fixed Income Investment Debts

Interested in investing your money somehow, but don’t have a clue how these things work? Or do you already know a little about investments, but have questions that keep you from moving forward?

Either way, rest assured. Let’s help you with some investment tips. So you have a clearer notion about what this process is like and thus make your money pay off better.So let’s talk about fixed income: an extremely interesting opportunity for new investments. Want to know more? So follow the article and answer your main questions about it!

1. What is fixed income?

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It is every kind of investment that has paid remuneration at predefined intervals and pre-established conditions. m pays your investment by paying in the form of interest. For example, if you borrow $ 1,000 at a rate of 2% per month, at the end of the application you will receive the amount of $ 1,020, referring to the amount initially invested plus interest charged. .

2. Who am I lending my money to?


This can be either the government or financial institutions or private companies. In short, we say that fixed income investments are debt purchases, that is, you actually get a Title that makes you a lender of certain institution.

3. What are the main types of fixed income investments?

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Currently, the great alternative to saving has been Treasury Direct. This is because many Brazilians have realized that investing in savings has been a very profitable business despite its popularity with the banked public and Treasury Direct offers, among other benefits. :

  • Security;
  • Higher profitability;
  • Ease of purchase;
  • Liquidity etc.

However, there are other very interesting options such as debts (corporate debt securities), CDB (bank securities), LCIs and LCAs and LCs.

4. How does Direct Treasury work?

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Among the best known and those with the lowest credit risk, risk means the possibility of not receiving the principal amount negotiated, due to default. Federal Government, also called Direct Treasury.

By buying debt securities, you lend money to the government, helping to finance different operations. With better post-fixed options, Treasury Direct offers different time frames for redemption, always depending on the needs of the investor.

Direct Treasury is considered a safe investment because it has a very competitive return compared to other fixed income applications, besides offering the possibility of indexing yields to reference interest rates or inflation. Yeah, it is an investment that can be made from very low values.

5. How do deb ntures work?

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There are also debts, which are nothing more than securities issued by companies to raise funds. Because these are corporate debt securities, the yield on debts depends on the reliability and soundness of each company, depending on factors such as the need for credit and the size of the organization.

Compared to public debt securities, debts are bonds that offer higher credit risk, however, the return is also usually higher.

6. How does the CBD work?

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The Bank Deposit Certificate (CDB) is already issued by financial institutions, ie banks. Through these securities, banks raise funds, those of private companies and the bank. government. In this case, these resources help finance credit activities, which is what you actually buy from investors’ debt securities, so that banks can offer loans. and financing.

CDBs are traded at a fixed interest rate or at a rate linked to economic indices, such as inflation, the Selic rate, among others.

7. How do LCIs and ACLs work?

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Agribusiness Letter of Credit and Agribusiness Letter of Credit, respectively, LCIs and LCAs are investments aimed at operations of financial institutions in the real estate and real estate sectors. agribusiness.

There are prefixed and fixed-yield options, following the Interbank Deposit Certificate (CDI) and guaranteeing: Higher profitability than other alternatives on the market; Income Tax Exemption; Guarantee of up to $ 250 thousand by the Credit Guarantee Fund (FGC).

However, you should always look at profitability, measured as a percentage of the CDI. By not paying IR, LCIs usually end up with a low CDI percentage. Depending on the case, it is worth applying in the CBD, even though it has tax. We did a simulation here.

8. How do LCs work?

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“Exchange Letters” LCs are for any investor who wants to earn better returns than the medium and long-term savings. They have advantages such as low initial investment and daily return. However, they have incidence of IR, with regressive table. Bills of Exchange represent a type of private credit that is somewhat comparable to the CBD, as it is also issued by financial institutions.

These investments are considered safe because they are guaranteed by the Credit Guarantee Fund (FGC) of up to $ 250 thousand per financial institution and CPF, in addition to being backed by financing contracts for individuals. Physical and legal.

They are suitable for investors of any profile as long as they are not looking for high liquidity.

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Finally, it is important to note that if you do not have much money to invest yet, investment funds are a good alternative as they allow for diversification of applications.

As this is a very complex matter, fixed income investment is always permeated by many debts. However, we have tried to present here some of the most relevant information to help you understand more about the topic. By understanding how each of the fixed income options presented here works, you are now able to invest your money more safely and effectively, thus getting good fruits from your choice.

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