SUMMARY
The incentivized bond market rose to prominence in 2024 with Eletrobras’ decision to launch R$1.63 billion in incentivized bonds for ten years. The movement has fueled the sector and brought attention to these funds due to their resilience and returns that outperform some other domestic asset classes.
According to oneCDI-indexed debt funds have the second-highest returns, behind only global funds that have benefited from a stronger dollar. This scenario has sparked interest..
Analysts point to a number of factors that are driving up the price of stimulus bonds, including regulatory changes and favorable market conditions.highlights that growing demand for tax-exempt assets contributed to the strong performance.
Recent changes to resolution 5.118 which changed the rules for the issuance of CRI, CRA, LCI and LCA, also led to an increase in demand for stimulus bonds, causing the price of these securities to increase.
Already notes that the poor performance of variable income assets in 2024 – with the Ibovespa index stable and small-cap stocks falling more than 11% – has led investors to seek refuge in CDI-indexed fixed income assets. With the prospect of the Selic rate rising to 11.25% per annum, the incentive for debt funds has become even more obvious.
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estimates that these funds are less susceptible to fluctuations in the interest rate curve when the index changes, especially during periods of instability.
While IPCA-indexed funds suffered from the opening of the interest rate curve, CDI-linked funds managed to maintain their performance. However, Weinberg notes that which helps compensate for market fluctuations.
THAT has been identified as one of the critical elements for the success of debt funds. Omachi emphasizes that in an uncertain interest rate environment, the ability to adapt and implement effective strategies is fundamental to achieving good results.
The RB Capital Debêntures Incentivadas FIC FI RF fund, for example, has a strategy of searching for assets with attractive risk-returns and active activity in the secondary market.
This approach allowed the fund to achieve a return of 11.91% in 2024, standing out in the market. Likewise, .
with carry above CDI +2.2% and moves that supported share price gains. Most of the time, the fund traded near or above book value, accelerating earnings and benefiting its shareholders, Weinberg said.
The country’s current scenario favors incentive debt funds, especially those indexed by the CDI, which have proven to be an attractive option for investors looking for profitable and sustainable alternatives amid market volatility.
Source: Istoe Dinheiro
I work as an author at the World Herald News, a news website that also covers the economy. I have been writing about economic topics for over six years and have written extensively on topics such as unemployment, housing prices, and the stock market. My goal is to provide readers with expert insight into these important issues so they can make informed decisions.