Letters
An excellent alternative for short-term liquidity needs.
What are Letters?
Letters are debt instruments issued by governmental entities, providing investors with a way to finance the government in the short term, usually less than a year. They are considered safe and liquid investments, used to generate short-term gains, offering returns with lower risk.
Main features
Short term
They cover the government's short-term financial needs.
Fixed income and security
They allow for strategies that reduce or eliminate investment risks. They are secure due to their governmental backing and short-term maturity.
Liquidity
They are highly liquid, as they can be easily bought or sold before their maturity.
Risk
As they are backed by governments, they have minimal default risks, although they are susceptible to changes in interest rates or the economy.
Why invest in Letters?
Due to their attractiveness stemming from government backing, which reduces the risk of default, their liquidity, and the possibility of safely generating profits in the short term, they offer stability and capital preservation.
