Firms Race To Tap Brazilian Capital Market

The race is on. With the Brazilian economy forecast to face increasing headwinds in 2010, local companies are racing to access the nation's capital markets before the window begins to close as the year draws on. It seems Brazil may well become a victim of its own success. The strong recovery in the South American nation in H209 has red-flagged concerns about the economy overheating and posing a risk to its asset markets. Anticipating such developments, companies are rushing to tap the equities market while the nation's macroeconomic recovery remains credible in the eye of global investors. Paulo Petrassi , an analyst at the local Leme investment fund, agrees: 'Conditions will be worse than they are now, with interest rate hikes across the globe and the end of stimulus measures.'

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