
What are Fixed Income instruments?
Fixed Income instruments are debt issuances made by public or private entities in order to raise capital. The terms and conditions of these issuances are predetermined based on the entities' specific financing needs and repayment capabilities.
Fixed Income Product Classification
Issuer
Fixed-income instruments can be issued by both the public sector (governments) and the private sector (companies).
Currency of issue
Fixed income instruments can be issued in different currencies, including pesos and dollars.
Maturity
The issuances can have varying maturities, including monthly, annual, and other periods.
Legislation
Fixed income instruments are issued under specific legislation, which determines the authority responsible for interventions in the event of payment default. This jurisdiction may be a local or foreign court, as stipulated within the issuance terms.
Differences with Equity instruments
Performance depends on pre-agreed payments.
The return depends on the change in the price of the asset and on the dividends paid.
Payments and payment dates are known.
The change in assets is uncertain and dividends are dependent on the company's earnings.
Lower risk.
Higher risk.
FINANCIAL INSTRUMENTS
Fixed Income Instruments
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How to buy a Fixed Income product?
To trade, you need to open an investor account with a broker.
Choose the instrument you want to trade.
Submit a buy order, choosing the settlement cycle (same day or next business day settlement), price and quantity.
If someone sells the instrument under the same conditions you are looking to buy, you will be able to complete the trade.