Securitization of real estate receivables in Brazil
Tabacniks, Erika M.
- Abstract: Submitted in partial fuivlfillment of the degree of Master of Arts in Law and Diplomacy at the Fletcher School of Law and Diplomacy. Abstract: The implementation of a securitization system that could be used as an efficient way of financing the real estate market in Brazil depends on the existence of three main items: a favorable macroeconomic environment; a comprehense and effective leg... read moreal and regulatory framework that brings security to investors; and a broad market with investor appetite for different types of investments. These three factors are currently present in the Brazilian market and securitization of real estate receivables seems to be a promising source of funding. However, its expansion is subject to the rules imposed by the government on the market and in the economy, which can create incentives to attract investors or not. Despite the existence of the three items above in the Brazilian market and the recent developments in securitization and government efforts to enhance long-term funding options, it will still lag behind in 2011. There are important hurdles facing this segment in Brazil, such as the high interest rates that have haunted the economy for decades and other technical and structural problems.read less