Deferred payment checks (DPC) trading volume increased almost 23
percent in 2017 measured in pesos and 2.6 percent measured in units.
DPC holds better yields than other fixed rate investments with the same
risk and maturity. This yields were correlated with the reference rates
of the monetary market in Argentina throughout 2017 with the same
Deferred payment checks (DPC), at MAV (Argentine Securities Market, by its
Spanish acronym) increased in the last year measured in pesos and in checks
units. Total traded amount in pesos increased 23 percent while measured in
check units it increased 2.6 % accounting all segments. The biggest rise
was at the direct segment, where based on MAV’s data ARS $ 1.417 billion
were traded increasing 25 percent annually.
In the whole segments, based on MAV’s data, total traded DPC amount
increased 22.69 percent to ARS $ 19.019 billion in 2017 from ARS $ 15.501
billion in 2016. Amount of payments checks also rise 2,6 % percent to
128,638 units in 2017 respect to 2016.
At the unguaranteed segment the increase was also very important reaching
ARS $ 1.187 billion in 2017, with a 21 percent annually rise in 2017. At
the second half of 2017 the increasing pace improved to 200 percent
compared with same period of 2016.
The average DPC rates at MAV were correlated with the other reference rates
at the argentine monetary market with the same maturity. In detail, the
longest maturity rates exhibited the biggest increases throughout the year.
For example, the average endorsed check rates increased 470 basis points to
29.4 percent in December 2017 from 24.7 percent in December 2016. The
dollar debentures, with a longer maturity, increased 121 basis points to
8.30 percent in December 2017.
At the end of 2017, the DPC traded other than the endorsed ones increased
significantly. In November and December of 2017, the endorsed trading share
decreased to 88 percent of the total explained by an increase in the DPC
volume at the unguaranteed and warrant guaranteed segments.
On the other hand, the guaranteed traded rates throughout 2017 were bigger
than other reference rates at the monetary market. The guaranteed traded
checks yield 32.7 percent with a maturity of less than 60 days at December
2017. This rates are better than the Argentine Central Bank Bills that
yielded 28.5 in the same period. The guaranteed segment in the MAV counts
with AA + rating that according to MAV authorities, ‘this shows the
solvency of the instrument and the quality of the organization and
management of the Argentine Securities Market’.