Cresiciente

Cresiciente is a term of Spanish origin that translates to "growing" or "increasing." It is primarily used in a financial context to describe a bond or investment whose coupon payments or value increase over time according to a predetermined schedule. This can be structured in various ways, such as a fixed percentage increase each year, or linked to an economic index like inflation.

These types of securities are often issued by corporations or governments looking to offer investors a way to benefit from rising interest rates or inflation. For the issuer, it can be a strategy to manage cash flow, as payments are lower in the early stages and higher in later stages. For the investor, a cresiciente instrument offers a hedge against inflation, ensuring that the purchasing power of their income stream is maintained or even enhanced over the life of the investment.

The specific terms and conditions of a cresiciente security, including the rate of increase and the basis for any adjustments, are detailed in the offering documents. Investors should carefully review these details to understand how the value and payments will change. While the term "cresiciente" is not as widely used as "inflation-linked bond" or "step-up bond," it accurately describes the fundamental characteristic of a growing payment stream.