Bond & Equity Trading
We trade the most popular currencies (G-10) on the spot (*) market such as:
(*) Spot Market: the market where the currencies are traded with a tenor of up to 48 hours.
We trade the most popular currencies on the Forward (*) market such as:
(*) Forward: Agreement to buy or sell a specific amount of currency at a determined rate and maturity. The minimum maturity is 3 days.
We trade Inflation Forward (*) for companies that need to hedge assets or liabilities linked to inflation.
(*) Inflation Forward: Agreement to receive or pay CLF against CLP for a specific amount of CLF at a determined price and maturity
– CLF: Unidad de Fomento: Index that reflects the rate of inflation of a specific tenor.
– CLP: Chilean Peso.
We structure IRS (*) and CCIR (**) for clients that need to swap loans or bonds from one interest rate to another or from one currency to another.
(*) IRS: Interest rate Swaps – this is an agreement that obligates two counterparties to exchange payment for a determined amount and for specific dates. The payments are calculated based on fixed to floating interest rates or any combination of different rates.
(**) CCIR: Cross Currency Interest Rate Swaps – this is an agreement that obligates two counterparties to exchange payment for a determined amount expressed in both currencies and interest rates for specific dates.
We trade locally and internationally corporate and Government Bonds (*) and stocks. They can be traded as single assets, ETF (**), or through an index (***).
(*) A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bond details include the end date when the principal of the loan is due to be paid to the bond owner and include the interest rate of the loan.
(**) ETF: Exchange-traded funds. It tracks the price of an asset or basket of assets. They trade on exchanges and can be bought and sold like stock via a traditional brokerage account.
(***) Index: An index is a method to track the performance of a group of assets in a standardized way. Indexes typically measure the performance of a basket of securities intended to replicate a certain area of the market.