from Latin Finance – 
Daily Briefing Wednesday, May 16, 2007
Precatórios Abound in Brazilian ABS Market
There are as many as 10 deals currently in the works that aim to securitize precatório payments in Brazil, Jayme Bartling, head of Brazil’s Fitch office, tells LatinFinance. Precatórios, or court-ordered payments the federal, state or municipal government must make to an individual or company, have become popular assets for securitization because despite the complexity of the credit analysis required for the options, they are seen as reliable single-asset streams of funding that in most cases are guaranteed by the Brazilian constitution. But so far, only one deal, Polo Precatório I, has been structured, via Deutsche Bank. One US-headquartered shop is planning to issue a credit-linked note off its own balance sheet to give foreign investors exposure to precatórios.
Waldemar Jezler – www.libracap.net – 5/16/07
Tags: waldemar jezler