The LCD (Development Credit Letter) is scheduled to hit the market in October, but analysts prefer other titles at the moment. (Image: inkdrop)
The financial market is about to receive something new in fixed income securities. A LCD (Development Letter of Credit), considered a “cousin” of LCI (Real Estate Credit Letter) and the LCA (Agribusiness Letter of Credit) is expected to be launched in October.
In a recent statement, at the headquarters of the Federation of Industries of the State of São Paulo (Fiesp), the vice-president Geraldo Alckmin reinforced the importance of this title for financing the country's industrial development. To give you an idea, the LCD is expected to capture up to R$ 1.5 trillion for the sector.
The measure comes after the National Monetary Council (CMN) increased the maturity dates of LCIs and LCAs at the beginning of this year, reducing the volume of issuance and demand.
However, in the view of Laís Costafixed income analyst at Empiricus, the best opportunities now are not in letters of credit. In the previous week, two decisions monetary policy designed a new interest rate scenario in Brazil and the United States.
Nos USAo Fed (Federal Reserve), as the American central bank is known, made the first interest rate cut since March 2020, reducing the rate by 0,50 p.p. The movement was widely expected by the market, although the magnitude went beyond consensus.
On the other hand, in the Brazilo Copom (Monetary Policy Committee) of the Central Bank decided to follow the opposite path and raised, in a unanimous decision, the interest rate in 0,25 p.p. The decision came to reinforce the commitment to pursue the inflation targetwhich remains at high levels, according to the Focus Bulletin.
Thus, this entire scenario led the analyst to recommend a specific category of fixed income securities, which she believes tend to benefit from this context.
Below, I explain what these titles are and how you can access Laís Costa's recommendations completely free of charge.
It is not LCI, nor LCA, nor LCD… these titles can benefit from the current scenario and are guaranteed by the FGC
While the market tries to look for alternatives that can replace LCIs and LCAs, other titles fixed income are already a good option for investors in the current scenario, according to Laís Costa. These are titles that:
- They have good paywhich can reach up to 110% do CDI;
- They offer securitywith a guarantee from the Credit Guarantee Fund (FGC) for up to R$250 thousand per CPF;
- Have daily liquidityto redeem the money whenever you want;
- They benefit from the rising interest cycle.
The analyst believes that the combination of likely inflation reviews ea growing fiscal concern should lead the market to challenge the current pace of increase in Selic at the next Copom meetings.
To give you an idea, expect a Selic a 11,50% at the end of this year, according to the Focus Bulletin released on Monday (23). In the previous report, the forecast was that interest rates would end the year at 11.25%.
And this increase tends to benefit the class of securities that the analyst is recommending. After all, in periods of high interest rates, they tend to pay moreeven if they are not indexed to Selic. Titles indexed to the CDIfor example, follow the Selic and yield more when she goes up.
Therefore, the good news is that the titles recommended by the analyst are available to any interested investor from free way. Therefore, to get to know them, just click on the link below and fill out your registration. An email with instructions will arrive for you:
Free: discover 4 securities to invest in now and surf the interest rate scenario
Weekly, the analyst “searches” the fixed income securities market and selects those with the highest earning potential, given the market context. And in her recommendations this week, she selected bonds that tend to gain from the current interest rate scenario.
To the register for free at this linkyou will get to know the 4 fixed income securities which she is now recommending. So, just fill in your details to receive free instructions in your email.
In addition, you will also have access to a detailed analysis of monetary policy decisions in the US and Brazil and the growing Brazilian fiscal risk following unexpected decisions in public accounts.
It is worth highlighting that this material is available to you as courtesy. In other words, you don't need to pay anything or commit in any way to consult. Therefore, I suggest that you at least take a “look” at the indications. Then you can decide if they really make sense for your assets: