Learn about Fixed Income investments
What is Treasury Direct?
Tesouro Direto is a program by the National Treasury, in partnership with the stock exchange, B3 SA – Brasil, Bolsa, Balcão, for the sale of federal government bonds to individuals via the internet. It is a famous investment modality in Brazil for its security and attractive returns, with different bonds and terms with higher returns than savings accounts under current rules.
Pre-Fixed Titles
How does your compensation work?
The remuneration of the Treasury Prefixado is defined at the time the investor invests his money in the security in question, and it consists of an annual rate. This security, however, is subject to market marking and anyone who wants to sell it before its maturity may suffer from fluctuations in its price.
Advantages and risks
The Treasury Prefixado is a bond from Tesouro Direto, a program for buying and selling federal government bonds in partnership with B3. Experts consider the government to be the safest creditor in the country, making it a very conservative investment in terms of credit. However, it is marked to market and its prices fluctuate, which may affect investors who sell the bond before its maturity date.
Who is this investment intended for?
The Treasury Prefixado is a security recommended for investors who want to know exactly how much they will receive at the end of the investment, but it is not recommended for people who need to get rid of the security before its maturity, since marking to market can cause sudden fluctuations in the price.
Post-Fixed Securities
How does your compensation work?
The Tesouro Selic, as its name suggests, pays investors according to the basic interest rate, the Selic, which is set by Copom (Monetary Policy Committee) in meetings every 45 days. The calculation of the return is made daily for the investor, according to the percentage of the rate paid by the government. The Tesouro IPCA+ pays investors a rate predefined at the time of purchase + inflation variation (measured by IPCA – Broad National Consumer Price Index).
Advantages and risks
Tesouro Selic and Tesouro IPCA+ are bonds from Tesouro Direto, a program for buying and selling government bonds in partnership with B3. Experts consider the government to be the safest creditor in the country, making it a very conservative investment in terms of credit risk. Tesouro IPCA+, in turn, has the same security as Tesouro Selic, but is not recommended for conservative investors who need liquidity, since its price will fluctuate throughout the investment, which is not the case with Tesouro Selic. Investors who hold the bond until maturity, however, will not suffer from the mark-to-market effect.
Who is this investment intended for?
The Tesouro Selic is an investment recommended for conservative or beginner investors, since it has high security, liquidity on D+1 and is not marked to market: that is, its prices do not fluctuate over the investment period, unlike what happens with other Tesouro Direto bonds. The Tesouro IPCA+, in turn, is more suitable for medium and long-term investors who want to protect themselves against the effects of inflation for plans such as purchasing a property or even retirement, for example.