Brazil’s capital market boom lures bankers

Brazil's capital markets have grown to record levels this year and are luring a growing number of bankers seeking a piece of the booming business.
Securities firms have undergone a major round of hiring and expansion in Brazil as sales of bonds and stocks surged in recent years, buoyed by lower interest rates and faster economic expansion.
Banks have also expanded into new areas such as real estate investing, trading and asset management as local interest rates fall, the economy grows more rapidly and the government's debt ratings approach investment grade.
"It's hard to find an area that isn't growing today," Antonio Quintella, Brazil country head for Credit Suisse, said in an interview. "This has attracted some banks that up until now had waited to see whether this stability in Brazil's economy, the size of the market and this market growth was consolidated. And it is."
Hedge fund Drake Management, which oversees $10 billion in assets, opened an office in Sao Paulo last week to track corporate bonds, stocks and currencies in Latin America.
The expansion in Brazil has taken place as stock sales have broken records each year since 2004, when they totaled 9.15 billion reais ($4.82 billion). So far in 2007, 54 companies have sold 43.43 billion reais worth of shares, far outpacing the 31.18 billion reais raised in all of 2006. Another eight companies have filed to sell stock.
"Brazil's macroeconomic situation is very favorable," said Roderick Greenlees, head of Brazil mergers and acquisitions at UBS Pactual, the top equity underwriter in the country this year. "Companies are taking advantage of the economic situation."
Greenlees said he expected the second half of the year to be very strong.
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