Brazil seeks international bid with covered bond plans

Brazil seeks international bid with covered bond plans

Brazil Bonds

Brazilian banks will soon be able to sell covered bonds, in a measure that the government hopes will attract international investment and reduce the cost of home lending. Covered bonds are dual-recourse instruments, backed by the issuer and by a pool of mortgages. They are used extensively for bank financing in Europe. Panamanian lender Global Bank is the only Latin American bank to have sold such an instrument on a cross-border basis. Brazil’s finance ministry hopes the extra security the instr

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