Death of Structured Notes Seen as Brazil Bond Tax Ditched
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Brazilian Finance Minister Guido Mantega is making obsolete the world’s most-popular market for structured notes tied to bonds.
Sales of the Brazilian notes, which package bank bonds with derivatives to allow foreign investors to replicate the nation’s higher-yielding real debt while avoiding a 6 percent tax, have plummeted to $40 million in June, 97 percent less than last month’s tally. Issuance is now on pace to be the lowest since September 2011 after Mantega scrapped the so-called IOF tax June