FINANCIAL PRODUCTS

Fixed Income

Understand Fixed Income instruments and explore their potential for investment and financing.

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.

Advantages of investing in Fixed Income instruments

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Profitability

High degree of certainty in terms of profitability and lower volatility.

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Payment Flow

The terms for repayment of principal and payment of interest are known in advance.

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Liquidity

Possibility to sell the instrument on the secondary market before expiration.

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Currencies

Their currency of issue, settlement, and payment may be in pesos or dollars.

Differences with Equity instruments

FIXED INCOME
EQUITY
Yield

Performance depends on pre-agreed payments.

The return depends on the change in the price of the asset and on the dividends paid.

Payments

Payments and payment dates are known.

The change in assets is uncertain and dividends are dependent on the company's earnings.

Risk

Lower risk.

Higher risk.

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Corporate Bonds

Debt securities issued by companies that promise to repay principal and pay interest.

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Government bonds

Tools used by governments to obtain financing.

How to buy a Fixed Income product?

1

To trade, you need to open an investor account with a broker.

See list of brokers

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.

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Fixed Income and On-Exchange Repos

Learn about the main characteristics of On-Exchange Repos and Fixed-Income instruments: the products with the highest market volume.