Fixed Income Avenue: is it possible to invest through the American brokerage?
Find out everything about Avenue fixed income!
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Anyone who wants to invest in fixed income Avenue knows that there are good investment opportunities in the American market.
There is no doubt that Brazil has dozens of investments in this asset class, but it is entirely possible to find very advantageous options in other countries, such as the USA.
For this reason, and also because of rising inflation and the post-pandemic economic recovery, interest in investments abroad has increased considerably.
To help you better understand the subject, we will explain everything about Avenue fixed income, so that you can get to know this brokerage better and learn how to start investing in the US (without having to leave Brazil). Check it out:
What is Avenue?
The brokerage firm Avenue Securities is an institution created by Brazilians, headquartered in Miami, Florida.
Launched in 2018, the company's goal has always been to facilitate access to the US financial market for ordinary investors.
Avenue currently has over 300,000 registered accounts, in addition to several North American financial products available for purchase.
Although it is a relatively new company, the brokerage firm stands out for its quality service and for having helped thousands of people to start investing in the American market.
Avenue has managed to reduce the bureaucracy involved in investing abroad. Now, investors can operate in the foreign market in a simpler and more practical way.
What is fixed income?
Before you start investing in the US or Brazil, it is important to know exactly what fixed income is.
In fixed income investments, the calculation of remuneration is previously defined and known at the time of application.
However, there are some fixed-income investments where it is not possible to know exactly how much you will receive on the maturity date. Even so, it is possible to run a simulation and get an estimate. This is the case of Tesouro Selic and post-fixed CDBs, for example.
In general, whoever acquires a fixed income security, you are “lending” your money to someone.
In return, the investor will receive the amount invested plus interest.
The transaction conditions, such as reference index, terms and rates, are defined at the time of contracting.
Fixed income in the USA: how to invest?
To invest in fixed income securities, the first step is to open an account with a brokerage firm that offers this type of financial product.
In fact, Americans have an easier time buying these assets, but that does not mean that Brazilians or people living in other countries can have access to these products.
What are the fixed income products in the US?
There are excellent fixed income investment options in the US.
A good alternative are investment funds that buy fixed-rate or post-fixed bonds linked to inflation (which rose 7% in the US in 2021).
Another option is ETFs – Exchange Traded Fund.
By the way, did you know that there are more fixed income ETF options on the American market than shares on the Brazilian stock exchange?
This is one of the reasons why it is worth investing in Avenue fixed income products!
In the US, investors have access to both short-duration bonds and long-duration assets.
Fixed income ETF: what is it?
An ETF is a type of investment.
But unlike traditional funds, it replicates the composition of some market index.
In other words, in this case, they replicate fixed income investment indexes – public and private bonds.
Fixed income ETFs abroad seek to track foreign indexes linked to interest rates, for example.
Fixed income Avenue: is it worth investing?
Anyone familiar with the investment market knows that in addition to predictability, fixed income assets offer more security and less risk.
However, fixed income securities in the US tend to pay less than Brazilian ones, as investments here are considered riskier by the market.
US bonds are mostly fixed-rate. That is, when you sign up, you will know exactly how much you will receive. Furthermore, they do not depend on any reference index.
This happens differently in Brazil, because here, there are many fixed income securities that are linked to the CDI (Interbank Deposit Certificate).
Currently, the basic interest rate in the US is between 0.% and 0.25%. However, these rates are expected to rise. Therefore, post-fixed investments will become more advantageous.
Investors expect the first increase of the rate occurs at the next Fed meeting in March.
Why invest in the USA through Avenue Brokerage?
Avenue brokerage is considered one of the best institutions for Brazilians who want to invest abroad.
One of the company's main advantages is that the institution's focus is on the middle-class retail public, allowing ordinary customers to invest in the American market.
It is very common for Brazilians to want to invest in the US stock market. If this is your case, you can be sure that Avenue is a great option.
However, you don't need to have a more daring profile, that is, more risk-tolerant, to make investments abroad.
After all, there are more stable investments, considered safer, especially for beginners.
Fixed income Avenue: how does investing in the brokerage firm work?
The brokerage firm operates with two of its own service departments, which make it possible to carry out financial transactions in the American market.
Investors interested in purchasing financial products need to open an account with the brokerage firm and then transfer funds through the company's own app.
The internationally headquartered institution receives the amount and transfers it to the North American branch.
The operation is very similar to other traditional financial transactions.
Conclusion
Now you know that it is possible to invest in Avenue fixed income products and how to do it!
For investors (especially beginners) interested in the foreign market, Avenue is considered a good alternative, as the broker facilitates access to the investment market in the USA.
