Monday, 9 March 2009

Brazil Sales of Stocks, Bonds, Notes and Asset-Backed Securities Dropped 85 Percent in February

Initial public offerings of equity and fixed-income tumbled 85 percent to 3 billion reais in February 2008 from 19.3 billion reais in the same month of 2007, according to Andima. No note or bond sales were carried out in February. No IPOs either. Sales of shares in funds of residential and commercial mortgage-backed securities (RMBS/CMBS known in Brazil as CRIs) and of shares on funds of asset-backed securities (FIDCs in Brazil) dropped 66 percent and 92 percent respectively.

Some improvement is forecast by analysts, provided that risk-taking gains momentum. Oi, the telecom giant created by the acquisition of Brasil Telecom by Telemar, requested shareholder approval for a sale of 3 billion reais in domestic debt. Petrobras was heard sounding out the local markets for a local issue. A total of 713 million reais in local issuances from Anhanguera, Banco Votorantim and ETEO are on the pipeline, according to the Tradable Securities Commission.

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