On the sidelines of the 3rd Annual Latin American Securitization Summit, there was talk among the Brazilians about mining a new asset class: renegotiated, past-due taxes owed to municipalities and states. "This could be a huge market," said one banker, who estimated that the state of Sao Paulo alone has R$5 billion (US$1.6 billion) in receivables. "Every municipality, state, and even the federal government has a massive stock of these receivables," he added.

In Brazil, individuals and other taxable entities that are delinquent on any number of government taxes can renegotiate the sum and pay in installments. The collector on the payments remains the government.

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