The arrival of Carnaval in Brazil typically lulls financial markets into a weeklong slumber. So this year domestic issuance won't resume until March, but players still had a few stories to tell before the party drowned them out.
Boutique bank Integral Trust, for instance, sold in full the first tranche of a receivables investment fund (FIDC) for Omni Financeira, an auto-loan lender specializing in used vehicles for a subprime consumer class. This initial tranche of shares amounted to R$10 million (US$3.4 million) and demand has already spilled over into the next two placements of R$10 million apiece, according to Carlos Fagundes, director of Integral, which structured the deal. Firm commitments for the upcoming tranches have compressed the calendar for the entire fund, sized at R$60 million (US$20 million). An initial 12-month timeframe has been shortened to the first half of the year.