The Brazilian Finance Ministry’s recent hike of the IOF tax on foreign investment into fixed income investments to 6% from 4% is bound to have some kind of impact on the appetite of overseas money for local securitization products. The increase comes after a 2 percentage point hike earlier this month.

While foreign investors do not make a significant portion of local structured finance demand, they are targeted by a number of shops, in particular as buyers into certain asset classes such as payroll deductible and agribusiness-related deals.

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