Andean Pensioners Drive Fund Surge to Real Bonds: Brazil Credit

When bankers at Deutsche Bank AG and Barclays Plc were piecing together orders last week for Brazil’s first real-linked international bond sale in three years, they discovered a new source of demand: Latin American pension funds.

“We had never seen these investors in global local currency deals,” said Dennis Eisele, a director in New York at Deutsche Bank, the biggest underwriter this year of overseas bond sales by Latin American issuers. He said investors from the region including Colombia, Peru and Chile made up a “substantial” amount of the almost 3.5 billion reais ($2.06 billion) of orders. “That’s great demand,” he said.