🔔 The dashboard: Brazil’s benchmark stock index Ibovespa rose 6.98 percent this week. Meanwhile, the Brazilian real fell 3.08 percent against the U.S. dollar this week.
- Biggest gains: Natura (beauty retail and consumptionl): +17.86 percent.
- Biggest drops: Americanas (retail): -16.69 percent.
Securities: Brazil has new rules for receivables-backed bondsÂ
Companies from all sectors will be able to issue fixed-income securities backed by receivables, the so-called receivables certificates, and trade them to raise funds and access the capital market – at a cost that is meant to be lower than banking finance.
State of play. New resolutions by the Brazilian Securities and Exchange Commission (CVM) and a law that creates the legal framework of securitization have made this possible. Previously, only real estate and agribusiness companies could easily issue such bonds in Brazil.
Why it matters. Brazil’s securitization market can grow a lot from here. Sanitation, infrastructure, and car rental companies, for example, are interested in issuing receivables certificates.
- “All economic segments can anticipate their receivables through CRs (receivable certificates in the Portuguese acronym). For example, a rail logistics company could securitize transport service contracts against mining...
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