Table of Contents

Order Now

01 Executive summary

By Anthony Dovkants

Section 01

Industry overview

Chapter 01

Market overview

  • Growth in Brazilian markets
    • Recent precedents for expansion
    • Strong core markets forecasts
  • Markets and political volatility
    • Strengthening the secondary debt market
  • Mandate opportunities
    • Potential for overseas players
  • M&A opportunities
    • Different entry strategies
  • Opening the door to foreign investors
    • Foreign investment into Brazilian public debt increases
  • Implications for issuers
    • Benefits of tax reform

Chapter 02

International issuance

  • Reinventing the wheel - new opportunities
  • Pricing advantages to investors and issuers
    • JPMorgan’s first FIDC
  • Routes into the debt capital market
  • Strategies for issuers
    • CESP deal indicates confidence
    • Opportunities for newcomers and established names
  • The opening of the perpetuals market
    • Market limitations
    • Restricted appeal
  • Reais-denominated globals
  • Liability management
  • Petrobras

Chapter 03

A bright future for ABS, CMBS and RMBS

  • ABS developments with upside
  • Opportunities in FIDC issuance
    • Banking alliances
    • FIDC fund structure
    • Tax benefits and costs
    • Default and other risks mitigated amid regulatory risk backdrop
    • Negatives and what ifs?
    • Minimisation of losses following defaults
    • CMBS, RMBS to boom by 2010, Credit Suisse makes its mark
    • Getting a slice of the commodity bonanza

Chapter 04

Debentures

  • Past lack of progress
  • Recent success in raising money
    • Telemar
    • AmBev
  • Time to revamp the debentures market
    • Barriers to development
    • Beginnings of market evolution
    • Offer from the BNDES
  • Changing attitudes

Chapter 05

Equity capital

  • ECM performance and drivers
    • Reforms in the Bovespa
    • Building up the market
    • New growth drivers
  • The rise of the small cap market
    • Improving market liquidity
  • Building investor confidence
  • Company valuations increase to international standard
  • Identifying the next candidate to market
  • Long-term strategy of leading banks
  • Entering the investment banking arena
  • Successful client preparation is vital to success

Chapter 06

Loans

  • True relationship banking
  • Reais-denominated loans
    • Cemig loans
    • Advantages of Reais-denominated loans
    • Eletropaulo loan
    • Overall market lacks innovation
  • Dollar-denominated loans
    • Brazil market picks up
  • Fee spread compression
    • Moves to maintain spreads and expand the market

Chapter 07

Credit derivatives

  • Credit default swaps
  • Market potential
    • The need for legislative reform
    • Market development risks
  • Opportunities in collateralised debt and loan obligations

Chapter 08

Exchanges

  • Bovespa moves toward regional integration
    • Foreign takeover potential
  • Starting the demutualisation process
    • Challenges to overcome

Chapter 09

Sovereign finance

  • Brazil comes of age
  • Future issuance
    • Dollar benchmarks
    • Re-tapping issues
    • Reais issues
    • Twin currency markets
  • Liability management strategy
    • Short-end debt
    • Long-end debt
    • Euro-denominated bonds
    • Dollar-denominated bonds
    • Moving to a buy-back programme
    • Correcting the floating-rate problem
    • Success of CPI-linked bonds
  • Final debt settlement hurdle

Section 02

Player profiles

Chapter 10

Overview

  • New banking opportunities
    • Entry options for the newcomer
    • Joint venture option
  • Start-up risks
    • Organic development
  • M&A is the best route for the bigger banks
    • Significant outlay needed from newcomers
    • Domestic banks build defensive positions
  • Increasing broker costs
  • Foreign and domestic banks in competition
    • Under-developed markets attract interest

Chapter 11

Bradesco

  • Market position
    • Aggressive objectives
  • Improved investment bank structure
  • Corporate targets
  • ECM and M&A expansion plans
    • Broker research
  • International operations
  • Brokerage services

Chapter 12

Itau BBA

  • Market position
  • Central strategies
  • Strong M&A pipeline
    • Executive changes
    • Strategic positioning
  • Capital markets
  • International opportunities
    • Building new business
  • Future sell-off?

Chapter 13

UBS Pactual

  • UBS takeover
  • New combination represents formidable threat
  • Complementary operations
  • Expanding the core businesses
    • Asset management
  • Pactual philosophy

Chapter 14

Banco Votorantim

  • Market position
  • Product innovation
    • Demand for new funds
  • Niche market strategy
    • Targeting medium-sized companies
  • International operations
  • Areas of potential growth

Chapter 15

Banif Primus Banco de Investimento

  • Market position
    • Specialist in alternative structures
  • Growth areas
  • Bank structure
    • Divisional strengths
  • Future sell-off?

Chapter 16

Unibanco

  • Market position
  • Overseas focus
    • Building a foreign investor base
  • Domestic markets
  • Human resources
  • Future policy

Chapter 17

Bulltick Capital Markets

  • Market position
  • Operational strategy
    • Building the pipeline
  • Expansion plans
    • Pan-Latin America formula

Chapter 18

Citigroup

  • Market position
    • High ambitions
    • Taking a long-term view
    • Growth programme
  • Unique business approach

Chapter 19

Credit Suisse

  • Market position
  • Domestic objectives
    • Building long-term client relationships
  • Future move into retail
    • Gaining a market presence

Chapter 20

Dresdner Kleinwort

  • New structure
  • Broad domestic focus
    • Planned expansion
  • Niche market targets
    • Private sector opportunities
    • Successful deals

Chapter 21

JPMorgan

  • Market position
  • Global strength supports domestic operations
    • Debenture restrictions
    • M&A progress
  • New strategic focus
    • Brazil heads pan-Latin American objectives

Chapter 22

Santander

  • Market position
  • Customer focus
  • Investment bank reorganisation
    • Overseas execution focus
    • Future strategy

Chapter 23

Braskem

  • Market position
  • Financial management strategy
  • Liability management
    • Aggressive on amortisations
  • Preferred finance instruments
  • Expansion prospects

Chapter 24

Companhia Vale do Rio Doce (CVRD)

  • No company does it better
  • Raising US$34bn in commitments
  • CVRD steps forward with R$5bn behemoth
  • Giant seeks up to US$3.5bn in bonds
  • CVRD Inco to list on London exchange
  • Life before Inco
  • Keeping a watchful eye on costs amid rapid expansion
  • Liability management still possible post Inco

Chapter 25

Gropo Votorantim

  • Market position
  • Astute financial management
  • Future challenges
    • Investment objectives
    • Improving debt profile

Chapter 26

Hedging-Griffo Asset Management

  • Market position
  • Investment strategy
    • Defensive forward view
    • Fund objectives
  • Relationship management
  • Future prospects

Chapter 27

Maua Investimentos

  • Market position
  • Investment strategy
  • Future prospects

Chapter 28

Tradition

  • Opening in Brazil
    • Partnership problems
  • Business strategy