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“When will Brazilian investors embrace structured finance?” The question came from a prospective international client last week. Investors have a right to be concerned; 2012 was not a year that the Brazilian asset-backed securities (ABS) market will remember fondly. Defaults have risen to record highs in many credit sectors, especially consumer loans. In addition, Brazil’s central bank (Banco Central do Brasil - BCB) has had to rescue 7 banks since 2010 ...
The Bolsa de Valores de São Paulo - Brazilian Mercantile and Futures Exchange (BM&FBovespa) maintains a total return index (IFIX) to track the performance of the largest and most liquid Brazilian real estate investment trusts (REITs), called Fundos de Investimento Imobilário (FIIs). This index offers investors critical information regarding the performance of Brazil’s booming real estate market. It is easily understood and very accessible on the BM&FBovespa website ...
Investors like the transparency that originates from access to timely, reliable, relevant and detailed information. Full transparency means that the investor has access to all the data necessary to make informed investment decisions and to monitor the investment’s performance. Almost any risk system is useless without some level of data transparency ...
We are creating this column to track developments in Latin American structured finance markets, present cutting-edge analysis of new deals and provide a venue for discussion of best practices. While structured finance provides an important channel for financing economic activity in any economy, it offers vital services to developing markets. A strong structured finance sector is generally a sign that a country’s debt market is developing and maturing.The bank sector in the developing markets of Latin America ...