By trying to endear itself to retail investors, Brazilian state bank Caixa Economica Federal has irritated bankers. Caixa officials have been talking to the local press about securitizing mortgages to low-income borrowers. As a vehicle, Caixa is eyeing the receivables investment fund (FIDC), the SPV of choice for tax reasons. After the bank made its intentions public, the National Securities Commission passed a rule allowing retail investors to directly and indirectly purchase funds backed by mortgages to low-income borrowers. The connection did not pass unnoticed. "It was a very specific authorization for Caixa," said one Sao Paulo-based lawyer. "It didn't seem like a nice thing for a lot of players."

Bankers have been pressing the CVM to allow the retail sector to buy into FIDCs, regardless of asset class. An email to Caixa was unanswered as of press time.

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