Structuring and Currencies

Credicorp Capital has an active participation in the Electronic Stock Exchange in Chile. Amongst our main clients we may highlight institutional investors, high net worth individuals and companies.

Amongst our main clients we may highlight institutional investors, high net worth individual investors and companies.

Entre las principales operaciones que este equipo ejecuta figuran:

  • Commodities Options
  • Interest rate hedging insurance
  • Inflation hedging insurance

Our main products are:

  • Spot
  • Spot arbitrage
  • Forward
  • Forward arbitrage
  • FX Swap
  • Interest Rate Swap
  • Cross Currency Swap
  • Currency Options
  • Commodities Options
Risks and Description of Products
Main risks
Price risk: It is defined as the value loss due to a negative fluctuation in the instrument market prices. Interest rate risk: It is defined as the variation in the value of an instrument caused by fluctuations in interest rates. If the interest rate increases the bond value decreases.

Liquidity risk: It is defined as the contingency that the organization may not sell (purchase), or otherwise suffer excessive losses (expenses) due to the disposal of assets at unusual and significant discounts (premiums). We may also define it as the ability to operate any instrument has, i.e., how easily an asset may be sold or bought before its maturity date?

Issuer risk: It is defined as the chance the borrower or issuer of paper or debt will default their financial engagements in the term stated at the beginning and especially at the maturity of the operation.

Fixed income instruments are the following:
Recognition Bonds UF
Mortgage Notes UF-CLP
Corporate Bonds UF-CLP-US$
Securitized Bonds UF-CLP
Covenants CLP-UF · PDBC/PRBC
Bank deposits
Commercial Papers
It is debt, or promissory notes issued by private as well as public companies or the government of Chile. Through fixed income market financing is pursued, thus the issuer promises to return the money, or capital, at a specific maturity date plus an interest rate. The return structure depends on each fixed income instrument. The most common return structure is a biannual interest payment and the return of 100% capital at maturity. Unlike shares, fixed income instruments do not grant a property percentage in the issuer company.
The fixed income has Rate, Liquidity, and Issuer risks.

“The information regarding products does not at all entail the confirmation or guarantee concerning profitability, future performance or loss or profit certainty they may experience in time”.