What are we thinking about?

SEC Reform In Chile, as in the U.S., some propose that company reports become semiannual rather than the current quarterly reports. In this piece we think it prudent to present some arguments that the U.S. Securities and Exchange Commission (SEC) has set out in its regulatory proposal. In principle, the SEC proposes making semiannual reporting an option so that each company can choose according to its commercial needs and investors. The proposal is partly based on how costly

Rule One of the rules breached by Sartor was Article 22, letter g), of the Chilean Single Funds Law (LUF). This rule sets out the prohibitions applicable to the fund manager (asset management). The law states that the following acts or omissions are contrary to it when carried out by (i) the managers or (ii) those who participate in the fund’s investment decisions, and that involve the acquisition or disposal of assets on behalf of the (affected) fund in which the (i) manage

In general, governments need it to be relatively easy to buy a home, because we know that most people do not have sufficient resources to buy one on their own. Credit is the way forward; that is, someone must lend money to those who want to buy a home but cannot. It is the government that must find who will provide that money. We are faced with the need for a policy. Moreover, because the State is usually the one actively seeking borrowers—an extremely important market agent—

Divergence In markets, when we look for financing rates, we should always observe, as any first‑year textbook teaches you, the Treasury Bill rates. And this applies to both long‑ and short‑term financing. Short‑term interest rates, those of the money market, are also often influenced by the reserve management of large institutions. By managing their liquidity day to day efficiently, they move prices, which is reflected in the rate. A good example is the SOFR rates (a type of

In several jurisdictions, including Chile, there has been some discussion about the so‑called Fair Fund. As is well known in the United States, the SEC (U.S. Securities and Exchange Commission) can distribute amounts obtained as sanctions to the harmed investors in a truly compensatory manner. Under the Sarbanes‑Oxley Act, the SEC acquired a new power that, like any authority, leaves room for discretion. In a way, it seeks to constitute a public remedy, complementary to or e

Funds or LPA of alternative assets As we know, alternative asset funds are becoming increasingly important every day. They consist of holding assets, from companies to debt, that are not traded on public markets. One of their most relevant characteristics is the term that the fund itself or the asset holding usually has. It begins with the commitment period, during which investors’ (LPs’) money is invested. Then comes the period in which exiting the fund is restricted, genera

For several weeks now, operators, managers, and newspapers in Chile have been noting that the exchange rate is unusually high, given that with copper at current prices, the Chilean peso should be trending upward. And indeed, with a simple technical analysis, this is not happening. There are several factors at play, as in law and finance, but one argument seems undeniable: the Chilean peso has been used as financing for carry trade operations. Benchmark interest rates in Chile

Derivatives are older than the stock market. Since we have been selling grain we have not yet harvested, to obtain some liquidity in advance and deliver it in the future, humanity has had them at hand. Recall, for example, Thales, the Greek philosopher, and the olive presses. Derivatives allow us to hedge against negative scenarios, uncollectible loans, and fluctuations that make us lose sight of a business’s core; to isolate currency markets from exchange‑rate volatility; an