The stage is set for a serious reunion of U.S. investors and Brazilian structured deals following a meager showing so far this year. For issuers, the invite reads loud and clear: come as you are. Due to monoline-supply scarcity and hungrier investors, the trend is to go unwrapped and Petrobras, for one, has apparently gotten the message. In a roadshow kicked off last week, the Brazilian oil giant was reportedly peddling an issue of no less than US$700 million, with an unwrapped tranche coming first and sized at around US$500 million.

"Nearly all the monolines are tapped out in Brazil and their pricing is getting expensive," said one lawyer familiar with Brazilian issuers. "There are several deals in the pipeline where the intention is to go unwrapped."

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