The tools you are using Sergio Massa contain the financial dollars and, through them, ensure that the blue and the gap with the official are not triggered, opened the door to a new “loop” OR financial bicycle which, according to stock traders, is making money 5% per week in dollars.
Although the operation is not for beginners, more and more Argentines use platforms such as those of IOL, Bull Market, PPI, Balanz or Cocos and enter the world of slightly more sophisticated investments.
In order for the curl to happen, it was first needed intervened the hand of the Ministry of Economy in the bond market so that the deputy dollar and liquidity do not increase. The functioning of the government is as follows: spend dollars from reserves buy bonds and those purchases drive up the value. Then they sell those securities in pesos and lower them. And they do it all with a special kind of bonus, the AL30.
This means that the AL30 is cheaper, “subsidised”, according to brokers. “It is 10 pesos lower than the other instruments. The government is investing 50 million dollars a day to maintain parity,” explains a market expert.
This situation has given rise to a curl that has several steps. If the saver has pesos, he buys the AL30 at $10,400 in cash. This voucher has one day’s parking, so it can only be sold after 24 hours.
The next day, that stock is sold but against dollars (in AL30D), at US$23.25 (if we take into account this Wednesday’s value). That gives $447 per dollar (up to now it would be an operation of a Euro MEP).
The next step is, with those dollars, to do the reverse operation but with LEDES (treasury bills): S3Y3 is bought for US$0.209 in immediate cash and sold against pesos to S31Y3 at $96.03. which gives $459.
That is, you earn $12 for every $447 invested or 2.7% per day. From this gain we have to subtract the platform commissions, which are generally around 0.4% or 0.5% for bonuses and 0.1% for Letters. In other words, the small retail investor A dollar rate of 1% per day stays clean, 20% per month.
The risk you run is that there is a parking day and that on that day prices may vary and the parity with the dollar may shift.
In general, this “curl” is done in pesos, but also you could enter with dollars and exit with dollars. The only difference is that once the dollars are obtained, by regulation they must be transferred to the bank and cannot be invested again in the same “bicycle”.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.