There are Romanians who are waiting for the Ministry of Finance to launch the Fidelis government bonds in order to subscribe to them and buy them at the initial price, while others are waiting for them to be bought at a lower cost after listing on the capital market, i.e. “at a discount”, mainly with higher profitability.

Usually, investors buy government bonds to hold them until maturity (as a diversification method, or they have a low appetite for risk and the bank’s offer does not fully satisfy them), and in other cases, to park the period money until I see certain opportunities.

Since many people need that money to pay off (for various reasons), they end up selling it at a lower price. While on the exchange, the operation is simple (a sell order is formed and executed, especially if it is done at the market price).

Buyers know that in some cases they will get much more if they buy them at a discount from other investors. That is, in addition to the classic annual interest offered by the Ministry of Finance, at repayment they will be paid the value of 100 lei or euros (depending on the circumstances), even if they bought them for a little more than 90 lei. Therefore, the increase is much higher.

Now, if we look at the stock market, we can see that there is some opportunity in the Fidelis government bonds issued by the Ministry of Finance, that is, the price is below the initial price.

Prices at which Fidelis securities are sold today

If we look at the 2020 models, we will see that they are currently sold like this:

R2408A (interest 4.5%/year) – 93.4 lei/name

R2508AE (interest 2%/year EUR) – EUR 95.5/title

R2312A (4% interest) – 95.2 lei/name

R2512AE (interest 1.85% EUR) – 92.75 EUR/title

Names from 2021:

R2403A (3.1% interest) – 92.3 lei/name

R2603AE (interest 1.55% EUR) – 92.2 EUR/title

R2307A (3.25% interest) – 95.8 lei/name

R2410A (3.75% interest) – 91.75 lei/title

R2610AE (interest 1.6% EUR) – 92.2 EUR/security

R2412A (4.6% interest) – 94.94 lei/name

R2612AE (interest 1.8% EUR) – 93 EUR/name

2022 titles:

R2504A (5.5% interest) – 97 lei/name

R2404AE (interest 1.6% EUR) – EUR 96.56/safety

R2304A (4.75% interest) – 97.8 lei/name

The ones I didn’t mention are either priced close to 100 lei/euro (eg from June 2022) or were for 1 year.

Of course, no matter how high inflation is, headlines can’t beat it. It’s just about a slightly better hill (it’s up to each person whether they think it’s a possibility or not – we’re not giving advice, we’re presenting an offer from the market).

Governor Mugur Iserescu is among the investors of Fidelis government securities. Last year he purchased 10,000 lei securities (1 million lei), but given the fixed amount, we conclude that he subscribed rather than bought on the capital market from other Romanians.

Obviously, inflation is very high and we don’t know what it will be like next year, even if BNR estimates that it will be 6.7% in December 2023 (in any case, it will be back with new forecasts by then) . Those who want to win usually also invest in companies in the capital market, that is, in stocks.

Economist Radu Krachun resumed stock accumulation

Economist Radu Krachun said on Monday in an interview with HotNews.ro that he keeps his savings in several currencies: for example, lei, euros, dollars. So don’t put all your eggs in one basket.

“How much have I changed my behavior? Much depends on a person’s willingness to take risks. As recently as a year ago, I was tempted to invest more in fixed income because I thought the stock market had already peaked and it was hard to see the potential for growth. But with the corrections that came out this year, I started slowly building equity again,” he said.

• Please, I invest in stock funds, that doesn’t mean the stock market can’t keep falling. But I do it through monthly investments – and it’s generally recommended – to have some monthly savings, because then even if the stock market continues to fall, you’ll benefit from that fall through the monthly contributions that you have.

“Now I have started building equity again. It is an investment fund that invests 80% in Romania and 20% abroad. I think Romania’s stock market has a chance to remain one of the most stable, given the lack of diversification. That is, the fact that it is such an energy-dependent stock market makes it promising in the international energy context. Therefore, I expect it to have lower volatility than the stock markets of other countries,” the economist explained.

• But apart from that, I can tell you that I have contacts with both commodity funds and real estate funds. It is very important not to put all your eggs in one basket.