Seo Salisbury

Last week I have made a study about high yield fixed income and found out that the Brazilian economy has the highest real interest rate in the world. Being curious I decided to research further into the Stock and Bonds Market in Brazil Exchanges.

When I learned about Brazil before I often thought of high inflation, an economy in recession and an instable financial market. After rating company Moody’s downgraded the Brazil to BB- in 1989 the consequences were imens. However in the last decade things have dramatically changed and nowadays Brazil is Latin America’s most important economy and on its way to become one of the most important economies in the world. The Brazilian currency Real is the most valuated compared to the dollar for three years in a row and the Brazilian Stock Market rallied in 2009 almost 90%.

On the most important Brazilian Stock Exchange Bovespa investors can buy, sell and rent stocks, fonds and derivatives while the BM&F trades currency futures. Both exchanges have been merged a few months ago into BM&FBOVESPA.

The spectrum of investment products is multifaceted and very well and closely regulated by the CVM (Comissao de Valores Mobiliarios).

As a non-Brazilian investor I can basically apply the same investments as a local investor, however I must appoint a Brazilian representative to be the responsible for my investments. As far as taxes are concerned foreign investors are exempted from tax unless they are living in an offshore jurisdiction.

This entry was posted on Saturday, March 20th, 2010 at 1:39 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.