In Brazil, investments, derivatives, loans and other financial contracts are often negotiated using as contractual rate (or reference rate) "percentage of CDI". But, what exactly is "percentage of CDI"?
As previously discussed here, CDI is the average rate at which Brazilian banks are willing to borrow/lend to each other for one day. This is the benchmark rate for the BRL domestic market.
"Percentage of CDI" is the discount/premium over the regular CDI rate. For example, when a bank extends a loan to a customer at 120% of the CDI, this means that the cost of this loan is 20% higher than the regular CDI rate. On a deposit transaction at 90% of the CDI, the yield on this investment is 10% lower than the regular CDI.
Negotiating interest rates using "percentage of CDI" is a specificity of the BRL domestic market. Market professionals often say this is related to historical reasons, mostly linked to the super high inflation (and consequently high interest rates) we used to have in the country some decades ago. Since prices and interest rates used to oscillate significantly on a daily (even intraday) basis, negotiating a fixed margin over the benchmark rate was not a reliable metric (imagine a margin of 1% over a rate of 10% and, on the following day, 1% over a rate of 100%). Percentage of CDI provides a return that varies depending on the prevailing interest rate levels, what worked better at that time for investors.
Coming down to math, this is the formula for calculating interests using "percentage of CDI":
Similarly to the numeric example provided in my last post, the calculation process for "percentage of CDI" starts with the daily compounding of the CDI.
Assuming that we have an investment of 100,000 BRL at 90% of CDI and that the CDI for the first day of the investment period is 11%, then the interests calculation for this first day would be:
Balance of your investment at day one: 100,037.28 BRL
Assuming that CDI for day two is 11,25%, interests calculation should be:
Balance of your investment at day two: 100,075.38 BRL
Interested in more information about the CDI and how financial products using this rate are calculated? Send me an email: mmatsmoto@gmail.com
Invest with 200$ and get a returns of 5,000$ within seven business working days.
ReplyDeleteWhy wasting your precious time online looking for a loan? When there is an opportunity for you to invest with 200$ and get a returns of 5,000$ within seven business working days. Contact us now for more information if interested on how you can earn big with just little amount. This is all about investing into Crude Oil and Gas Business.
Email: investmoneyoilgas@gmail.com
thanks to this firm It is not advisable to just embrace every trade opportunity because of scam,i have been a victim and lost upto $28,875 USD trust me. It is always good to trade with broker using a transparent pricing, fast and reliable trade executions.. I have been scammed in forex and binary options before I got to know of total company,a company where you invest in oil and gas,it is better you contact then for help too by E-mail: total.company@aol.com
DeleteInvest with 200$ and get a returns of 5,000$ within seven business working days.
ReplyDeleteWhy wasting your precious time online looking for a loan? When there is an opportunity for you to invest with 200$ and get a returns of 5,000$ within seven business working days. Contact us now for more information if interested on how you can earn big with just little amount. This is all about investing into Crude Oil and Gas Business.
Email: investmoneyoilgas@gmail.com
Do not use all of these Private Money Lender here.They are located in Nigeria, Ghana Turkey, France and Israel.My name is Mrs.Ramirez Cecilia, I am from Philippines. Have you been looking for a loan?Do you need an urgent personal or business loan?contact Fast Legitimate Loan Approval he help me with a loan of $78.000 some days ago after been scammed of $19,000 from a woman claiming to be a loan lender from Nigeria but i thank God today that i got my loan worth $78.000.Feel free to contact the company for a genuine financial call/whats-App Contact Number +918929509036 Email:(fastloanoffer34@gmail.com)
ReplyDeletethanks to this firm It is not advisable to just embrace every trade opportunity because of scam,i have been a victim and lost upto $28,875 USD trust me. It is always good to trade with broker using a transparent pricing, fast and reliable trade executions.. I have been scammed in forex and binary options before I got to know of total company,a company where you invest in oil and gas,it is better you contact then for help too by E-mail: total.company@aol.com
ReplyDeleteMAKE YOUR LIFE BETTER AND APPLY FOR A FAST RELIABLE LOAN NOW TO GIVE YOUR CHRISTMAS AND NEW YEAR A BEFITTING CELEBRATION AND PAY BACK YOUR DEPT...
ReplyDeleteAre You A Business Man Or Woman? Are You In Any Financial Mess Or Do You Need funds To Start Up Your Own Business? Do You Need A Loan To Start A Nice Small Scale And Medium Business?
Do You Have A Low Credit Score And You Are Finding It Hard To Obtain Capital Loan From Local Banks And Other Financial Institutes?. - Intermediaries / Consultants / Brokers Are Welcome To Bring Their Clients And Are 100% Protected. Interested Parties Should Contact Us For More Information
Through Via E-mail: quickloan9888@gmail.com.
I will Like To Inform You That Our Main Goals Are To Help Companies And Entrepreneurs Raise Their Business To better Heights By Investing, Consulting And Raising Capital Without Bank Lending. We Are Qualified In All Aspects Of Financing, Banks And Asset Based Lending. We Have The Ability To Handle All Aspects Of The Financial Needs And Challenges Of Our Clients, Including; Interested Parties or persons Should Contact Us For More Information.
Through Via E-mail: quickloan9888@gmail.com,
WE OFFER ALL KIND OF LOANS - APPLY FOR AFFORDABLE LOANS.
*BEWARE OF SCAMMERS AND FAKE HACKERS IMPERSONATING US BUT THEY ARE NOT FROM
US CONTACT US ONLY VIA THIS CONTACT *
WE ARE REAL AND LEGIT.
Through Via E-mail: quickloan9888@gmail.com,
SEND US YOUR DETAILS THROUGH OUR EMAIL OR WHATSAPP FOR THE PROCESSING OF YOUR LOAN, THANK YOU:
- Your full Name:
- Loan amount needed:
- Loan Duration:
- Purpose of loan:
- City / Country:
- Telephone:
- How Did You Hear About Us:
NOTE: This loan requires little charges for the processing and trust from our customers worldwide...we have change many life and willing to do more, contact us through our office email and somebody will attend to you fast...thank you.
Invest with 200$ and get a returns of 5,000$ within seven business working days.
ReplyDeleteWhy wasting your precious time online looking for a loan? When there is an opportunity for you to invest with 200$ and get a returns of 5,000$ within seven business working days. Contact us now for more information if interested on how you can earn big with just little amount. This is all about investing into Crude Oil and Gas Business.
Email: investmoneyoilgas@gmail.com
My name is Mr Christopher Nissen, I am a Citizen Of Netherland. Have you been looking for a loan?Do you need an urgent personal loan or business loan?contact Dr Carrol walker Finance Home he help me with a loan of $42,000 some days ago after been scammed of $2,800 from a woman claiming to been a loan lender but i thank God today that i got my loan worth $42,000. Feel free to contact the company for a genuine financial service. Email:(infoloanfirm8@gmail.com)
ReplyDeleteHello everyone I am here to testify how I got my loan without stress. I had fallen into the hands of many scammers but a friend introduced me to Sabin Loan Service. They helped me and directed me through the right procedure to get my loan without stress. Are you in need of financial assistance emergency loan or btc crediting,you can contact them via WhatsApp +79267494861 or inbox now at sabinhelps@gmail.com
ReplyDeleteTESTIMONY ON HOW I GOT MY LOAN FROM A GENUINE FINANCE COMPANY LAST WEEK. Email for immediate response: drbenjaminfinance@gmail.com
ReplyDeleteI am Mrs,Leores Jazbel by name, I live in United State Of America, who have been a scam victim to so many fake lenders online between November last year till July this year but i thank my creator so much that he has finally smiled on me by directing me to this new lender who put a smile on my face this year 2020 and he did not scam me and also by not deceiving or lying to me and my friends but however this lending firm is BENJAMIN LOAN INVESTMENTS FINANCE (drbenjaminfinance@gmail.com) gave me 2% loan which amount is $900,000.00 united states dollars after my agreement to their company terms and conditions and one significant thing i love about this loan company is that they are fast and unique. {Dr.Benjamin Scarlet Owen} can also help you with a legit loan offer. He Has also helped some other colleagues of mine. If you need a genuine loan without cost/stress he his the right loan lender to wipe away your financial problems and crisis today. BENJAMIN LOAN INVESTMENTS FINANCE holds all of the information about how to obtain money quickly and painlessly via Call/Text: +1(415)630-7138 Email: drbenjaminfinance@gmail.com
When it comes to financial crisis and loan then BENJAMIN LOAN INVESTMENTS FINANCE is the place to go please just tell him I Mrs. Leores Jazbel direct you Good Luck.......................
I am super excited today, all thanks Lapo Micro Finance for giving me a loan. I was deceived several times trying to get a loan until I came across Lapo Micro Finance who provided me with a loan worth $ 23,000 to care for my sick child. If you need a real lender today contact Lapo .Contact email: lapofunding960@gmail.com
ReplyDeleteWhatsapp +447883183014
Have you been looking for financing options for your new home purchase, construction, real estate loan, refinance, debt consolidation, personal or business purpose? Welcome to the future! Financing made easy with us. Contact us as we offer our financial service at a low and affordable interest rate of 3% for long and short loan term, with 100% guarantee loan, Interested applicant should contact us for further loan acquisition procedures via: joshuabenloancompany@aol.com
ReplyDelete