Summary: local banks, pension funds, BanRep, international investors, and public financial institutions were the main buyers of COLTES in November, with insurance companies also in the mix. The total inflows from these entities amounted to c.COP16.5trn of COLTES, with commercial banks accounting for roughly half of this inflow. Financial corporates, the Hacienda, and mutual funds were the main sellers of COLTES in November, recording a combined reduction in allocation of c.COP2.8trn. Total net issuance during the month came in at a notable c.COP13.2trn, or an increase of 2.1% in total local TES outstanding.
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International investors’ COLTES allocation rose by just under COP1.4trn (or 1pp) in November, which drove market ownership from 19.6% in October to 19.4% in November (c.COP137.5tn), given the slower increase in allocation vs. overall market growth (i.e., net issuance). The allocation increase in November was concentrated in nominals (TES B), with net purchases totalling c.COP1.1trn, while the positioning in inflation linkers (TES UVR) in the month was just under COP0.3trn higher.
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Commercial banks were the largest buyers of COLTES in November, increasing their holding by c.COP8.2trn resulting in a MoM increase in holdings from 14.8% to 15.7% as total local bank allocation increased by a notable 6.8%.Purchases were concentrated in nominals (TES B), accounting for 86% of local bank COLTES allocation, while inflation linkers (TES UVR) accounted for the rest.
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Pension funds’ net flows saw purchases totaling COP2.6trn of COLTES in November, all of which was concentrated in nominals (c.COP2.9trn) with only minimal outflows from inflation linkers (TES UVR). Holdings of COLTES declined slightly from 29.5% to 29.3% in November given the just 1.3% increase in allocation vs. the 2.1% increase in market size (net issuance).
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The Ministry of Finance/Hacienda was the second-largest seller of COLTES in November, reducing its allocation by just under COP1.0trn to c.COP13.0trn. Sales were exclusively in nominal TES market. The Hacienda’s ownership fell from 2.0% to 1.8%.
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BanRep was also a sizable buyer of COLTES, purchasing close to COP2.5trn, mostly in nominals (c.COP2.1trn) lifting ownership from 5.4% to 5.8%
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Insurers increased their allocation in COLTES by COP0.6trn (+0.7% MoM), lowering their holdings slightly from 12.0% to 11.9%.
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Mutual Funds bought c.COP1.4trn and COP1.3trn of COLTES, respectively with purchases mainly in linkers (TES UVR).
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Financial Corporates were the largest sellers of COLTES with net sales totalling c.COP1.3trn taking their allocation down to COP2.7tn in November from COP4.1trn in October. Ownership fell from 0.6% to 0.4% with the outflows exclusively from nominals (TES B).