What is the Bopreal bonus that some banks offer to private customers: is it suitable as an investment?

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In an increasingly market fewer options that manage to defeat inflation, Argentine investors are looking for new alternatives to protect their capital. After the placement of Series 1 of the Bond for the Reconstruction of a Free Argentina (Bopreal), with which the Central Bank seeks to cancel the debt contracted with importers, Now the organization is trying to seduce SMEs to subscribe to the second series.

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Although to subscribe to Series 1 of this bond, already closed, one had to be an importer and be registered as such with the Central Bank, For trading on the secondary market there is no such limitation.. The bonus yields 18% annually in dollar terms and in this market an average of 15 million dollars are traded per day, which any type of investor can access. It’s more, There are already banks that offer it to their retail customers buy from home banking.

But, Is this a really interesting opportunity? Opinions are divided in the municipality. On one side, Pedro Siaba SerrateFrom PPIsaid: “The Bopreal Series 1 It could be a good alternativeas we believe that for now your tax payment requirement (at par) is not included in the price, which should start to gain momentum in the coming weeks/months.”

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“Unlike the Bonares/Globales, this instrument is Central bank risk (a priori better than the National Treasury) ends up amortized in the Milei administration, which is a attractive feature for those who want to bet on a good performance of the administration, but without exposing themselves to what may come later”, he added.

Like everything, investing is based on expectations. In this sense Siaba Serrate clarified: “However, for an aggressive investor who wants to bet on the normalization of the sovereign curve, which implies not only a program of structural reforms and the achievement of fiscal balance this year, but also the ability to maintain it over time, Global bonds at these prices have a upside down (possibility of increase) greater”.

From Coconut cap explained: “Retailers can go into the App and search BPO27 and buy like any other asset (minimum 100 and multiples of 10). But It is not useful to pay by cable and transfer on account and order to third parties abroad (as can be done with Globals). You can just sell it (in the currency you want) and transfer it to an account in your name, wherever it is, but in your name.”

There are those who believe that investing in a bond like Bopreal requires a certain sophistication that the average retail investor doesn’t have. As explained by Central at the time of its launch, the first series will accrue dollar interest at a nominal annual rate of five percent (5%) and will be calculated on the basis of thirty (30) day months and three hundred and sixty (360) day years . But from March 1st this instrument will be divided into four “subseries”, which can constitute each one lose volume and become less attractive to retailers.

“Once that happens, we need to consider the objective of the retail investor because the Series A, BYC can be treated as a link dollar, a hard dollar or to pay taxes depending on the objective of each of those who they invest,” he said. and added: “They take it like hard dollar an AL30 is preferable to the value quoted today.

In this sense, Matteo Reschinifrom the investment app Sendsaid: “As an investment for retailers, we look at it as a medium or long-term investment for a more speculative investor. Sovereigns, the AL30, the G30, the G35, have greater appeal because they are, let’s say , bonds at a lower parity, what we would like is for it to be the lowest parity possible.

While, The 2 Series has greater appeal for retailers, but its secondary market will start operating after the XXL Carnival holidays. “Regard a simpler, shorter-term bond with monthly dollar flow from July 2024 to June 2025, even if it doesn’t pay a coupon, it can be purchased at a discount and can work well”, explained Repetto.

Source: Clarin

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