Fynsa
The debate between fundamental and quantitative analysis has shaped the history of investing. Today, the greatest competitive advantage comes from combining both approaches.
Active management continues to make a difference in the U.S. dollar-denominated fixed-income market, supported by solid fundamentals and opportunities among high-quality Chilean issuers.
The IPSA, hovering near 10,000 points, is trading at a discount, and there are several selective buying opportunities. The local fixed-income market is returning to an acceptable level: there are bonds with a YTM of UF + 2.5% that offer very high credit quality.
In fixed income, we remain convinced of the merits of UF-indexed strategies, where inflation-linked returns continue to outperform nominal alternatives. In equities, valuations below the 10-year average and the lag in returns relative to Latin America present an opportunity to position oneself ahead of a potential de-escalation of the conflict and the passage of pro-investment reforms promoted by the current government.
Subordinated debt appears to be a middle ground: it costs more in coupons than a traditional bond, yes, but it buys financial flexibility and, in many cases, improves capital readings due to its subordination, long term, and certain contractual options.
The CPI for December registered a monthly decline of -0.2%, falling below market expectations. With this, inflation closed 2025 at 3.5% annually, just above November's figure.
Chile continues to offer an attractive risk-return ratio, supported by discounted valuations, attractive real rates and structural catalysts not yet internalized by the market.
Brazil's USD fixed income market is not simply experiencing turbulence: it is approaching a structural change that could redefine the country's access to international capital markets.
In this context, putting cash to work makes more and more sense: increase exposure in corporate fixed income, in equities buy the market dips, and diversify sectorally and regionally.
The classic 60/40 fixed income/equity formula is being challenged by a more complex environment. Institutional and sophisticated investors are increasingly incorporating alternative assets, with private debt being the first step in this evolution.
