Trading Stocks and Buying Bonds in Brazil
March 5, 2010 by Tucker · 9 Comments
I recently made a project at my university regarding high yield corporate bonds and discovered that Brazil has the highest real interest rate in the world. Being curious I decided to look further into the Brazilian Stocks and Bonds Market.
When I learned about Brazil in the past I often thought of high inflation, an economy in recession and a weak financial environment. After rating company Moody’s downgraded the Brazilian economy to BB- in 1989 the consequences were imens. However in the last decade things have dramatically changed and today Brazil is the continent’s strongest economy and on its way to become one of the most important economies in the world. The Brazilian currency Real is the most valuated compared to the dollar for three years in a row and the Brazilian Stock Market rallied in 2009 almost 90%.
On the most important Brazilian Stock Exchange Bovespa investors can trade stocks, fonds and derivatives while the BM&F trades currency futures. Both exchanges have been merged a few months ago into BM&FBOVESPA.
The spectrum of investments is multifaceted and very well and closely regulated by the CVM (Comissao de Valores Mobiliarios).
As a non-Brazilian investor I can basically buy or sell the same investments as a local investor, however I must appoint a Brazilian representative to be the responsible for my investments. As far as taxes are concerned foreign investors are tax-exempted unless they are resident in tax-free country.
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Top 3 Tips on Establishing Life Insurance Ratings
October 8, 2009 by Tucker · 8 Comments
When choosing life insurance, it is important to have some knowledge surrounding life insurance ratings. The rating of a particular company basically outlines the financial strength of the provider as a whole. Financial strength is important because it highlights the company’s ability to pay the benefits in which you will be issued in the event of a death or a loved one or the benefits that they will receive in the event of your death. Here are the top 3 tips on establishing life insurance ratings prior to choosing a policy:
1. The first thing that you should do when it comes to uncovering the life insurance ratings of a provider is to go on the internet and look up analytical charts that highlight the particular strength of a company according to the basic rating system. The companies that work to deliver the ratings of life insurance providers include A.M Best, Moody’s, Fitch, and Standard & Poor’s.
2. The strongest life insurance ratings will be easy to identify. Among all companies, they will be identified as: A++, AAA, Aaa, or will be identified by words such as “Secure/Superior”, “Extremely Strong”, “Exceptional”, and “Secure/Highest”. If you find a company with any of these ratings, you will know that they are top notch life insurance companies.
3. If you discover life insurance ratings of a score that involve the letter of B+ or higher, it is quite likely that the company is acceptable to do business with. However, companies that have a rating of B or below are considered to be quite risky and in all actuality, should be avoided at all costs.
It is absolutely essential to ensure that you know and understand a thing or two about life insurance ratings prior to investing in a policy. By choosing a superior rated company you can rest assured that benefits will be delivered as promised. However, choosing a company with low life insurance ratings is considered to be quite risky and should be avoided.
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