Drawn by a singular chance to swallow Nestle risk, Brazilian investors munched down a R$45 million (US$12.6 million) deal backed by a leasing agreement with the global food giant's signature. Led by Santander, the transaction was upsized a slight R$2.4 million and yielded 12.5% over the IGPM inflation index at the Jan. 27 close. Pricing matched a comparable real-estate receivables deal issued in September (see ASR 9/16/03), though the ratings on the most recent deal were higher and the size, smaller.

"There was less appetite for IGPM now than a few months ago," said Ricardo Leoni, an associate at the underwriting bank. A recovery in the local currency against the dollar over the past several weeks has pushed investors away from IGPM spread products, which are most attractive when depreciation risk feeds into inflation worries.

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