Bond growth in Brazil expected to continue

The Brazilian Capitalization Companies Federation (FENACAP) reported that the capitalization market keeps expanding. The Brazilian economy bond market posted a revenue of R$3.8bn (US$1.97bn) over the first five months of 2009, 8% more than in 2008. In May 2009 alone the sector recorded R$806.9mn (US$418mn) and accumulated R$13.8bn (US$6.97bn) in reserves - 10% more than in May 2008. ”An increasing number of consumers understand that capitalization bonds are a safe way to save money, and current growth pace is expected to remain over the next months’, said Hélio Portocarrero, FENACAP’ s executive director. Chairman Ricardo Flores said the data shows savers hold on to their plans and “this behaviour reflects the supply of different products for different segments, and this caters even more to client requirements. The market is growing in all regions of Brazil”.