Fynsa
This financing solution not only helps buyers in a complex credit environment, but also drives more responsible construction and procurement practices.
The Central Bank of Chile has resumed the reduction of interest rates, which has led to a greater relevance of the UF and short-term bonds as conservative investment alternatives.
Local assets continue to offer an attractive risk/return ratio
The Central Bank published its September Monetary Policy Report, the famous IPoM. It came with several novelties, some of which we would like to highlight.
With banks' participation in real estate project investment structures on the decline, real estate debt investment funds have managed to increase their participation in this market.
The flow of buying continues to dominate the foreign exchange market, despite sales by both the Central Bank and the Treasury.
The spread between the local rate and the FED rate has been compressed, but the game will continue until we have clarity on the beginning of the rate cut in the US and we discount the level to which the Central Bank will have to adjust rates.
January's inflation came in higher than expected, but we must remember that a new basket of goods was introduced to measure inflation, along with a new base year of 2023 = 100, which also incorporated methodological changes and improvements.
It will be vital to monitor upcoming data to assess the need to accelerate the process of cutting the MPR.
The December CPI surprised the market with a 0.5% m/m drop; in this scenario we believe there is room for 100bp cuts or even a 125bp run.
