The appetite for straight Brazilian exposure among risk-seeking foreign investors appears to be hearty. Union National recently sold to about 15 hedge funds R$350 million ($163 million) in a receivable investment fund (FIDC) backed by discounted trade receivables from a variety of medium and small Brazilian companies. Some R$150 million has been funded, while the other R$200 million has already been allocated but not yet paid out, according to Samy Podlubny, a partner at BCP Securities, the placement agent. Shares in the fund mature in December 2008 and carry a national scale rating of A+' from local agency Austin Rating.

The type of hedge funds that buys into an FIDC isn't too concerned about the provenance of the rating and, in this case, about the fact that there is no global scale assessment, Podlubny said.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.