MIAMI - While last week's Information Management Network Spring ABS 2007 conference provided a good primer on the Brazilian structured finance market for the uninitiated, participants from Sao Paulo were also holding forth on what's ahead for entrenched players. On the lips of a few players was Companhia Paulista de Trens Metropolitanos (CPTM), a state-run company that operates Sao Paulo's commuter trains.
CPTM recently collateralized receivables from 21 stations in a future flow transaction arranged by Rio Bravo Investimentos. Other state companies could follow suit because they face tight debt restrictions that are bypassed in the future flow structure, according to Chuck Spragins, a partner at Uqbar, a Brazilian consultancy specializing in securitization. "This should pave the way for all kinds of government-owned companies to do the same," he said.