Special Presentation on Brazil’s Capital Markets
FOCUS ON BRAZIL
On May 12, in view of Brazil’s recent debt reprofiling activities, and increasing investor interest in Brazil local markets, EMTA hosted a panel presentation entitled, “Brazil Capital Markets”.
Attended by approximately 170 people and unexpectedly spilling into an overflow room at EMTA’s offices at 360 Madison Avenue, the meeting began with the announcement by Michael Chamberlin, EMTA’s Executive Director, of the signing that morning of an agreement between EMTA and ANDIMA, Brazil’s National Association of Financial Institutions, to collaborate on projects, activities and initiatives intended to further the development of Brazil’s local markets. Michael Chamberlin commented on behalf of the EMTA community that “[i]n the last several years, as investment activity in the Emerging Markets has steadily grown, global investors have shown increasing interest in local market investment opportunities throughout the Emerging Markets. Nowhere has this been more apparent than in Brazil which, in addition to a strong track record of sound economic policy, has been moving rapidly to change its debt profile from dollar instruments to local currency.” ANDIMA’s president, Alfredo Penteado de Morães, likewise commented that “[our] most important target is to boost the liquidity and the transparency of the secondary market of private and public bonds.” For the text of EMTA’s press release regarding this collaboration with Andima, please Click Here.
The panel discussion began with a comprehensive overview by Alfredo Penteado de Morães, of the Brazilian financial markets and led into more specific discussion by the panelists of local instrument liquidity in Brazil, clearing and settlement issues, as well as legal and tax issues. Focusing largely on the fixed income markets in Brazil, the two and a half hour meeting included individual presentations by several of EMTA’s new Brazilian members, Banco Pactual, Banco Itaú and Banco Votorantim, as well as by CETIP, Brazil’s central security depositary. Following the meeting, many of the guests lingered for lunch at EMTA’s offices, taking advantage of the opportunity to meet and pursue further discussions with the individual presenters.
The meeting was well-attended and well-received by the audience and feedback from the EMTA membership supports a second such meeting, refined to reflect audience and participant feedback, which is currently scheduled to be held in London in the Fall.
Copies of the presentations by each of the speakers can be found in the New Developments section of EMTA’s website (May 12, 2006 entry) or by Clicking Here.