19/03/2010
Trading Stocks and Buying Bonds in Brazil
Last week I have made a research regarding high yield corporate bonds and found out that the Brazilian economy has the highest real interest rate of the world. Being curious I decided to research further into the Stock and Bonds Market in Brazil Exchanges.
When I learned of Brazil before I always thought of a devaluate currency, a struggling economy and an instable financial market. After rating company Moody’s downgraded the Brazil to BB- in 1989 the consequences were disastrous. But in the last decade things have dramatically changed and nowadays Brazil is the continent’s most important economy and on its way to become one of the most important economies in the world. The Brazilian currency Real is the strongest currency against the dollar for three years in a row and the Brazilian Stock Market rallied in 2009 almost 90%.
On the most important 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 some months ago into BM&FBOVESPA.
The spectrum of invest vehicles is manifold and very well and closely regulated by the CVM (Comissao de Valores Mobiliarios).
As a foreign investor I can basically buy or sell the same investments as a local investor, however I would have to appoint a Brazilian representative to be the responsible for my accounting. As far as taxes are concerned foreign investors are exempted from tax unless they are resident in tax-free country.
Filed under Technology and Gadgets by Sandy James
Leave a Comment