Treasuries on the rise: Find out how to invest in American government bonds
United States public bonds, known as treasuries, have increasingly attracted Brazilian investors interested in diversifying their portfolio and seeking exposure to international fixed income.
In periods of global economic uncertainty, treasuries tend to gain prominence alongside gold and the dollar, as many investors turn to assets considered more stable in times of volatility.
Today, it is possible to invest in American public bonds directly through B3, with applications accessible from around US$100, through ETFs (index funds) and BDRs (Brazilian Depositary Receipts), assets that replicate the behavior of US public debt.
"Today there are options such as BSHY, which offers exposure of up to three years. BIGL, with ten-year exposure in the United States and BTLT, linked to 20-year bonds", says Bernardo Pascowitch, presenter of Resenha do Dinheiro.
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According to the Brazilian Stock Exchange, responsible for trading these assets in the country, there are five types of Treasuries:
- T-Bills, aimed at short-term investments, between one month and one year;
- T-Notes, with maturities of two to ten years;
- T-Bonds, between 20 and 30 years with fixed semi-annual interest;
There are also Tips, indexed to American inflation, with investments lasting 5 to 30 years and interest paid semi-annually, and FRN, post-fixed securities with variable yield.
Despite the bonds' deadlines, the investor does not need to remain with the investment until final maturity to access the resources.
"It is not necessary to keep these investments for three, 10 or 20 years. As the assets have daily liquidity, you can sell whenever you want. In practice, the investor is buying exposure to the maturities of these securities", says Pascowitch.
The expert also highlights that fluctuations in ETF prices are natural and follow the movement of American interest rates.
"It is important to understand that this behavior is expected. American public bonds are paying very high rates at the moment and, therefore, ETFs end up becoming cheaper to offer higher returns. It does not necessarily mean a loss. When interest rates start to fall, these ETFs tend to appreciate again", he explains.
Investments in treasuries were the subject of the "Investor Chat" section, presented by Bernardo Pascowitch in this week's Money Review.
Dinheiro Review
Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the "Financial Daddy", Marilia Fontes, founding partner of Nord Investimentos; Bernardo Pascowitch, founder and CEO of Yubb, proposes a light, direct and uncomplicated approach to topics related to financial education and investments. The attraction addresses the main themes of the economy weekly with the informality of a conversation between friends - without compromising on analysis.
The Money Review airs every Friday, at 7pm, on the CNN Money YouTube channel and on Sundays, at 3pm, on CNN Brasil.
Source: CNN