A few days ago I have made a study about high yield corporate bonds and found out that Brazil has the highest real interest rate of the world. Being curious I decided to research further into the Brazilian Stocks and Bonds Exchanges.
When I learned of Brazil in the past I always thought of high inflation, an economy in recession and a weak financial environment. After rating company Moody’s downgraded the Brazilian economy to BB- in 1989 the consequences were disastrous. But in the last decade the situation has dramatically changed and today Brazil is Latin America’s most stable economy and is becoming one of the most important economies in the world. The Brazilian currency Real is the most valuated compared to the dollar for three consecutive years and the Brazilian Stock Market rallied in 2009 almost 90%.
On the biggest Brazilian Stock Exchange Bovespa investors can buy, sell and rent stocks, fonds and derivatives while the BM&F trades lifestock futures. The exchanges have been merged a few months ago into BM&FBOVESPA.
The spectrum of investments is rich and very well and closely regulated by the CVM (Comissao de Valores Mobiliarios).
As an investor from oversea I can basically make the same investments as a local investor, however I would have to appoint a Brazilian representative to be the responsible for my actions. As far as taxation is concerned foreign investors are tax-exempted unless they are resident in an offshore jurisdiction.
