Mercado al día / Negociación

 

Definition y Benefits

 

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Definition

 

An operation of securities lending stock to an investor who acts as lender, is an opportunity to get additional performance by its values, preserving the economic rights over the securities lent. The extra yield is obtained by the interest rate the borrower pays the values it paid, in exchange for certain guarantees. The lender can lend their securities up to a maximum of 360 calendar days.

 

For the borrower investor is the opportunity to make an investment strategy through a short sale, covering this with the values obtained the loan, so it makes a profit selling securities at a specified price (short selling), and then repurchasing the same securities at a lower price, then return them to the lender that lent the securities.

 

 

 

 

Benefits

 

• Better legal clarity in the face of corporate events.

 

• Exchange model is tax efficient.

 

• Opportunity to generate an additional income with available securities.

 

• Lender maintains the economic rights

 

• Facilitates a short selling strategy.

 

• CAVALI manages the lent securities and guarantees.

 

• CAVALI maintains separate guarantee accounts by client and by operation.

 

• Guarantees are intangible in a remote case of CAVALI’s bankruptcy.

 

• The counterparties are the broker agents.

 

• The negotiation can be limited with up to five counterparties.

 

 

Table of Reference Values

 

The Table of Reference Values can be found in the following link: http://www.bvl.com.pe/estadist/Nuevatvr.pdf

 

 

 

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