A first-time issuer in Brazil is set to provide a test case for securitizing personal and consumer loans whose payments don't rely on automatic deduction. Dacasa Financeira is prepping a receivable investment fund (FIDC) backed by loans to lower income individuals who have to pro-actively make payments, according to a source on the transaction.

So far, the only loans to be securitized in Brazil are owed by pensioners and public sector employees, with payments automatically deducted from their paychecks or social security payments.

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