Latin America

[...] and engineering financial markets. Based on President Dilma’s publicly stated vision, the public banks have embarked on a state mission to lower credit spreads in Brazil and steer the economy away [...]

[...] and engineering financial markets. Based on President Dilma’s publicly stated vision, the public banks have embarked on a state mission to lower credit spreads in Brazil and steer the economy away [...]

[...] negative consequences of the federal government’s program to use the balance sheets of public banks to reduce credit spreads for loans in Brazil.  Our main concern was that the public banks [...]

[...] negative consequences of the federal government’s program to use the balance sheets of public banks to reduce credit spreads for loans in Brazil.  Our main concern was that the public banks [...]

[...] Brazilian bank analysts are trying to convince you that their country is not experiencing a consumer credit bubble. They see the possibility of a full-blown crisis as remote.  However, the very [...]

[...] with bad loans. According to the data pulled from the Banco Central do Brasil Database, consumer credit delinquencies over 90 days as a percent of the bank’s credit portfolio (percent non- [...]

[...] income per person in the United States. According to Central Bank of Brazil data, issuance of consumer credit grew 15.3% for the year ended June 2011 and outstanding balances grew 22.46% for the same [...]

[...] .   Translated from Valor Econômico May 4, 2012 SAO PAULO – Defaults should curb consumer credit in the coming months even with the drop in interest rates, according to the prediction [...]

If you’ve not heard of Morada Bank, it was a spectacular bank failure wrought with fraud in April of 2011 that is still causing headaches for its in [...]

If you’ve not heard of Morada Bank, it was a spectacular bank failure wrought with fraud in April of 2011 that is still causing headaches for its in [...]

We feel that this article provides some important measures of the deteriorating credit conditions in Brazil. We are especially concerned about debt se [...]

[...] felt that defaults would peak in the second half of 2012. The headlines in the March 15th Serasa Experian news release read “The Worst Moment for Late Payments from Consumers is Behind Us.” Serasa [...]

[...] felt that defaults would peak in the second half of 2012. The headlines in the March 15th Serasa Experian news release read “The Worst Moment for Late Payments from Consumers is Behind Us.” Serasa [...]

[...] in the coming months even with the drop in interest rates, according to the prediction of Serasa Experian. The indicator that measures the company’s prediction for lending in the six months ahead [...]

[...] in the coming months even with the drop in interest rates, according to the prediction of Serasa Experian. The indicator that measures the company’s prediction for lending in the six months ahead [...]

[...] . In addition, we show how Banco Panamericano was using the FIDC to remove bad loans from its balance sheet. Here is the link to the Journal of Structured Finance Article [...]

[...] . In addition, we show how Banco Panamericano was using the FIDC to remove bad loans from its balance sheet. Here is the link to the Journal of Structured Finance Article [...]

[...] feat before. It has also failed spectacularly. We doubt that the Brazilian government has the balance sheet to save the Brazilian economy by forcing the credit spreads lower in Brazlian financial [...]

[...] feat before. It has also failed spectacularly. We doubt that the Brazilian government has the balance sheet to save the Brazilian economy by forcing the credit spreads lower in Brazlian financial [...]

[...] directly from Valor Econômico and reviews the most recent statistics from the Survey of Consumer Debt and Default as published by FecomercioSP, the São Paulo office of this national business [...]

[...] the outstanding principal and that it will need to increase in order to see true reductions in consumer debt. Exhibit 6   Exhibit 7   Consider some other facts: Brazils social security fund, [...]

[...] 23rd )  The journalist quotes several economists who are concerned about the level of consumer debt.  One subject of deep concern, which we wrote about last year in our third quarter [...]

[...] market expects 13.12%.                 Data Sources: Banco Central do Brasil Database; Cetip   [...]

[...] . In all, this scam continued from 2007 until April 2011 when Morada was seized by the Banco Central for violating “disciplinary legal norms” and moreover because it was insolvent. [...]

[...] . In all, this scam continued from 2007 until April 2011 when Morada was seized by the Banco Central for violating “disciplinary legal norms” and moreover because it was insolvent. [...]

[...] economy and help the private banks maintain clean balance sheets. The result is that the Banco Central do Brasil (BCB) data shows that percentage of bad loans in bank portfolios is declining [...]

[...] de Crédito Bancário (CCB) backed by payroll loans or “consignado” loans underwritten by Banco Morada. CCBs are a form of collateralized debt that can be issued with or without guarantees.  The [...]

[...] de Crédito Bancário (CCB) backed by payroll loans or “consignado” loans underwritten by Banco Morada. CCBs are a form of collateralized debt that can be issued with or without guarantees.  The [...]

[...] at multi-years lows, Brazil is experiencing a bubble in the consumer credit markets and non-performing loans in this sector are rising rapidly.  Banks are cutting back on credit and tightening their [...]

[...] recently issued that looks at credit performance and the levels of delinquent and non-performing loans in Brazil’s financial system. This report focuses on Brazilian banks. LATAM [...]

[...] we have recently issued that looks at credit performance and the levels of delinquent and non-performing loans in Brazil’s financial system. This report focuses on Brazilian asset-backed securities. [...]

[...] expensive when the risk-free interest rate is 12.5%.  Provisioning 200% and 300% of non-performing loans is also admirable, but people build higher walls when they expect bigger waves.   In other [...]

[...] more insight into the potential returns and risks embedded in the shares (tranches) of a Brazilian ABS. They also propose norms for standardizing the information needed to trade in secondary [...]

[...] cotas (tranches) of Fundos de Investimento em Direitos Creditórios – FIDCs – Brazilian ABS. We know of only one other study that has calculated returns for this asset type and [...]

[...] We recently wrote a piece, entitled Mantega Magic:  Opportunities for Brazilian ABS, that explored the expected negative consequences of the federal government’s program to use [...]