Fund Managers Race to Secure Tax Breaks on Brazil Local Debt (1)

Some of Brazil’s biggest credit-fund managers are rushing to capitalize on increased demand for infrastructure local bonds, betting investors’ ‘fear of missing out’ will fuel a deluge of issuance before tax relief in the sector is potentially scaled back.

Investment firms like Sparta Fundos de Investimento and Absolute Investimentos are resuming fundraising through tax-exempt bonds, specifically those tied to infrastructure. JGP Asset Management is also accelerating plans to launch two new infrastructure-linked funds by the end of the year in anticipation that demand will continue to increase and spreads will tighten further.

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