On the way in Brazil is a deal that will introduce local investors in receivables investment funds (FIDCs) to the concept of principal protection. The transaction is an eight-year fund, with senior shares amounting to R$200 million ($85 million) and a subordinated tranche of R$2.5 million. Moody's Investors Service has rated the senior piece Ba2' on the local currency global scale and Aa2.br' on the national scale, the latter typically used by domestic investors.

The rating mirrors that of the zero-coupon, eight-year bond or bonds that will provide principal protection to the deal. That bond will most likely be a single issue from Santander Leasing, according to a source close to the deal. Apart from the zero-coupon notes, proceeds from the shares will go to purchase equity in private companies, a specialty of Eccelera Administradora de Fundos, which is managing the equity-based transaction portfolio.

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