Bank of America Jumps Into Brazil’s Booming Local Bond Business
- Local CEO says low interest rates are driving demand for yield
- Bank says bond push won’t require new hiring or more capital
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Bank of America Corp. is expanding its Brazil fixed-income operation to include certain types of local bonds, a booming market where optimism about interest rates at all-time lows and the government’s economic reforms pushed new issuance to a record last year.
The bank started working with clients this month to help them with potential sales of corporate bonds denominated in the local currency, according to Eduardo Alcalay, Bank of America’s chief executive officer for Brazil. The securities will only be offered to professional investors, he said.