Fixed income abroad: see how to invest and discover the main options
Discover how to invest in fixed income abroad
Announcements
Have you heard about the possibility of investing in fixed income abroad?
This category of investments has attracted the attention of Brazilians.
Known for its security and predictability, this investment category is preferred by more conservative investors, that is, those who do not want to take risks.
In any case, even if you are a bold investor, it is worth having fixed income assets in your portfolio, so that you can create a diversification strategy.
And if you want to know more about the subject, you're in the right place!
Below, check out the main information about fixed income abroad.
What is fixed income?
Fixed income is a type of investment that people can know or predict the profitability of, even before carrying out the transaction.
In other words, it is possible to know the calculation of the application's yield.
To understand this type of investment, you need to know that in practice, when you buy a fixed income security, you are lending your money to the government, a company or a bank.
In return, on the agreed date, you will receive your money back plus interest.
Investors looking for more stable returns can find this in fixed income.
It is the first investment you should make if you don't have much experience or if you are thinking about building a your emergency fund, for example.
How to invest in fixed income abroad?
To start investing in fixed income abroad, the first step is to open an account with a foreign brokerage firm.
This way, you can make transfers via bank transfers. It is important to remember that all investment procedures are carried out in the local currency.
The most recommended option is to open an account with an American brokerage firm, as through it, you will have access to shares from several companies, even from Europe and Asia!
Additionally, it will be easier to manage your assets as you will have everything on a single platform.
If you don't want to open an account with a foreign broker (since the process can be a bit complicated), you can start invest in BDRs.
What are the main fixed income options abroad?
Do you want to invest in fixed income abroad? Check out the main options:
1. North American Bonds
Fixed income securities issued by the United States government are very similar to debentures and Tesouro Direto in Brazil.
They are issued by the US government as a way of raising funds to finance public activities.
This means that when investing in a US Treasury Bond, you are actually funding the United States government.
As the guarantee comes from the American government itself, considered the strongest economy in the world, North American Bonds are extremely safe securities.
As with the Brazilian Direct Treasury, treasuries have a maturity date.
What are the main types of bonds?
Now that you know what bonds are, it's time to learn about the main types:
Treasury Bonds
Known as T-Bonds, these bonds have a longer term than bonds issued by the US Treasury.
They have terms of over 10 years and are currently issued for 30 years.
Therefore, they are more interesting investments for those who are thinking long term.
Treasury Bonds offer semi-annual payments.
There are also other types of American bonds: T-Bills and T-Notes. They are recommended for investors focused on the short and medium term (between one and ten years).
Saving bonds
Savings bonds are issued to help pay off US government loans.
These savings bonds are considered safe because they are backed by the credit of the US government.
The bond will accrue interest over time. However, the investor will not receive the interest until the amount is redeemed.
They can only be redeemed by the bond owners and cannot be sold to other people.
2. Certificate of Deposits (CDs)
Certificates of Deposits are similar to Bank Deposit Certificates (CDB).
However, they are captured in the foreign market.
To access them, you need to open an account with an American brokerage firm. There are also ETFs (Exchange Traded Funds) that invest in these securities.
These products are issued by banks or private financial institutions. One of the main advantages is that they offer rates above those of government bonds for the same term.
Is it possible to invest in Saving Bonds or Treasury Bonds?
If you are considering these investment options for your portfolio, see the step-by-step guide we have prepared for you:
Open an account with a broker
To receive all the support you need when investing, it is very important that you open your account with a brokerage firm.
As purchasing procedures and tax rules may differ in other countries, professional support becomes essential for you to make the best decisions and avoid mistakes.
Evaluate the available options
When you create an account with a broker, you will have access to many investment options.
But before making any application, find out about the rules, remuneration, deadlines and risks involved.
Make the applications
Send the values to the broker so that the company can make the investments.
However, it is not enough to just invest! You need to keep an eye on the progress.
Also, check how the income will be sent. It is common for fees, which vary according to the institution, to be charged.
A good option for making shipments is the company Online Shipping, which has international brokers integrated into the platform and speeds up the entire process.
Conclusion
Now you know that it is possible to invest in fixed income abroad even while in Brazil.
The procedure is not as complicated as some people make it out to be. However, there is some bureaucracy involved and the rules may be different from what you are used to.
Therefore, before making investments, contact the chosen broker to clarify any doubts you may have (there are several American brokers that offer support in Portuguese).
