Founder @ Bamboo | Brazil's Premier Tech-Driven DCM Dealer | Pioneering Access to Debt Capital Markets 🎋🚀
🚀 Record Growth in Brazil’s Debt Capital Market in April! 🎋 Brazilian Debt Capital Markets sustained their secular growth in April, with total issuances reaching BRL 187 billion ($37B) in the first four months, representing a 139.1% increase compared to the same period last year. 📊 April highlights include: Interest Rates: In Brazil, there was a slight decrease in short-term maturities and a widening of long-term ones, affected by economic uncertainties and a more cautious view on government spending policies. In the US, the Fed indicated that interest rates will remain high for a longer period, which, combined with below-expected economic data, raised inflation concerns. Private Credit Markets: There was a slowdown in the offerings of #CRIs, #CRAs, and #debentures, with a 39% decrease in April compared to March, totaling BRL 33.8 billion ($7B). Factors such as problems in the agricultural sector and uncertainty regarding future Selic rate cuts contributed to this reduction and the increase in private credit spreads. Debentures, Commercial Notes (NC), and Real Estate #ABS (CRIs): Despite the slowdown compared to March, debentures and NCs continued to dominate issuances with a record BRL 115 billion ($23B) in the first four months compared to the same period in 2023. CRIs also showed strong growth, with an increase of 194%, totaling BRL 21.8 billion ($4B). Agricultural ABS (CRAs): These also performed impressively, totaling BRL 13.5 billion ($3B), an increase of 122% in the same period. 🔍 Market Radar: Impact of Spending Policies: Government reactions regarding spending policies are increasing uncertainties, which could influence the term structure of interest rates and investment decisions. Agribusiness: The first quarter was challenging for #agriculture. Requests for debt extensions, bankruptcy filings, and missed expectations made the cost of capital higher and more restrictive. Another point to watch is the impact of heavy rains in Rio Grande do Sul. Want to better understand how these trends can affect your investments or your business? Check out our attached monthly newsletter for detailed analyses and deep market insights. 💡 Exploring debt financing as an alternative to equity? Contact Raquel Silberberg Kryss, Bruno Valsecchi, Igor Donni, Felipe Moraes, Arthur O'Keefe, and discover how Bamboo Debt Capital Markets Platform, Brazil’s Premier Tech-driven DCM Dealer, can boost your company’s growth with our innovative debt solutions. Pioneering Access to Debt Capital Markets, together we can navigate the complexities of today’s market and unlock new opportunities for sustainable growth. 🎋 We look forward to exploring these opportunities with you! 🚀🎋 Article credit: Natan Oliveira Santos - Thank you! 🙏 #DebtCapitalMarkets #Debentures #Investment #BambooDCM #ABS #StructuredCredit
Great News! 👏
Strategic Accounts at Simetrik | Founding Partner at Atman
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