B3 () expects a less heated year than 2024 for the private credit market, but believes that the demand for this type of investment will continue.
“The investor will not have many other allocation options. Fixed income will continue to be an instrument that attracts capital, so there will be demand. Consequently, there will be an offer”, said CFO André Milanez, in a press conference at the end of B3 Day, at the Exchange’s headquarters in São Paulo.
“There may be a slightly different level of activity than there was this year due to this slightly different situation. But I don’t think that will change radically. This market will continue to exist and will remain very healthy”, he states.
With the resumption and acceleration of the interest rate hike cycle, companies are being challenged to issue bonds that pay more than public fixed income.
“Many companies refinanced their debts by raising funds from the local market and paying debts from the international market, for example. Depending on this interest rate scenario, some of these operations that have already taken place should not be repeated”, he explained.
No expectations of tariff changes
The fee cannot be a barrier to entry for investors at B3 and is an issue that the company follows closely, said Milanez.
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“In our view, this can never be an obstacle to increasing volumes. So, if at any point we feel that the tariff is preventing an investor from doing their business, opening an account or trading a product, we will review this”, he said.
However, the executive states that there is no tariff change agenda for next year, at least for now. “I don’t think there is any problem of this nature that we need to address and I don’t think that tariffs will be something that will impede the success of this initiative to provide access to our markets for foreign investors,” he stated.
B3 wants to bring individuals residing outside the country to the Brazilian capital market, targeting a potential of 250,000 investors with this profile.
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“There were some issues that were worked on with the regulators. Our expectation is that most of these obstacles will be completely resolved this year and that we will be able to start offering our products to foreign individual investors in the first half of 2025”, he said.
