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Invest in Fixed Income

Market Closed 04-25-2017 05:40 AM GMT -03:00


MONEY MARKET INSTRUMENTS

Money market instruments (IIF) are securities representing short-term (generally less than one year) financial obligations. They can be nominal or indexed.

These instruments are issued to finance an issuer’s short-term financial needs, or to operate as an instrument of monetary policy in the case of the Central Bank. From an investor’s point of view, IIF´s are low-risk, savings alternatives that take advantage of short-term fluctuations in interest rates.

These instruments are traded on Santiago Exchange through the electronic auction system, Telerenta and the Dutch auction system, where offers, bids and allocations are made through the exchange’s trading terminals.

These instruments are settled on the condition of same day T+0, next day T+1 and normal settlement (i.e. two days after the transaction is completed).

Check out our brochure and find out everything you need to know about our Debt Market here​

Chile Exchange - Traded Fixed Income Guide

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FREQUENTLY ASKED QUESTIONS


  • How can companies raise funds on the exchange?

    Companies have a number of options to meet their financing needs when implementing a growth plan, undertaking a specific project or simply restructuring liabilities. Among the financing options with third parties, the most used are financing through capital (i.e. raising capital by issuing new shares) and financing through debt issuance. 

  • What does it mean that the debt market is short, medium or long-term?

    Financial instruments in the debt market can be identified as short, medium or long-term according to the terms of the issuance. In general, the longer the term, the higher the expected returns. 

  • What does it mean that a money market instrument is not serialized?

    MMI instruments are not serialized because they are short-term, one-time issuances. 

  • How are Fixed Income Instruments classified?

    Fixed-income instruments are classified by: 

     

    1) Fixed rate: Instruments whose coupon interest rate is fixed. 

     

    2) Floating rate: Instruments whose coupon interest rate varies according to an established parameter. 

     

  • How are Money Market Instruments classified?

    Money market instruments are classified by: 

     

    1) Non-indexed or nominal: Instruments whose rate is expressed in Chilean pesos at 30 day rates. 

     

    2) Indexed: Instruments whose rates are denominated in any currency other than the Chilean peso (UF and dollar are the most common) whose rates are expressed in 360 day terms. 

     

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