The Brazilian rush to the dollar market shows no sign of abating. The future-flows class continues to drive the stampede and MBIA remains the go-to guarantor. Propelled largely by this third-quarter bonanza, future flows out of Latin America could near the US$4 billion mark for 2003 - the high end of Fitch Ratings' forecast. To date, the sector has yielded roughly US$2.5 billion, all but US$163 million of which is from Brazil.

In a move that surprised more than a few market watchers, iron ore producer Companhia Vale do Rio Doce (CVRD) closed a US$250 million 144A with no registration rights, backed by iron ore and pellet export receivables. JPMorgan was the lead. Tongues wagged about a delay in the ABS after CVRD handed a mandate for a US$300 million plain-vanilla deal to Morgan Stanley and Deutsche Bank a few weeks ago, but the issuer decided to do the securitization first, sources said.

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