January 1, 2006
Brazil, always among the most accomplished emerging-market issuers, performed exceptionally in 2005. Joaquim Levy, Brazil's treasury secretary, took over responsibility for international issuance from the Central Bank a year ago, and through a few deft deals has altered the country's international debt profile significantly.
Under Levy's command, Brazil exchanged its C-Bond, the collateralized Brady bonds that for years were the benchmark bond of the emerging market asset class, for a new plain vanilla A-Bond of pure Brazilian risk (see "A (Fabulous) Bond," p.29). He led issuance of the sovereign's first global bond denominated in reais for an impressive 10-year tenor, which at $1.5 billion
Treasury Secretary Joaquim Levy is catering more to investors and improving Brazil's debt profile. It might even win an investment-grade rating.