Vol. 10 No. 1 (2016), MULTINACIONALES, INVERSIÓN Y FINANZAS
Vol. 10 No. 1 (2016)

PRICING OF DEBT SECURITIES ISSUED BY BRAZILIAN COMPANIES IN U.S. DOLLARS

MULTINACIONALES, INVERSIÓN Y FINANZAS
Published 2016-04-04
Débora Confortini
University of São Paulo (USP)
Luiz Paulo Lopes Fávero
University of São Paulo (USP)
Robson Braga
University of the State of Bahia (UNEB)

Abstract

The pricing of assets is one of the biggest challenges in the fixed income market, particularly for assets issued in foreign markets. This article focuses on the analysis of the likely influence of some variables in pricing debt issues by Brazilian companies in the American market. To make a more diversified research, six different issues were selected during the period from January 2008 to December 2015, with similar maturities and different credit ratings. Two more issues with longer-term maturities and same credit ratings were also selected. Through regression models, the main variables that influence the prices of securities are identified, however, with a different approach between short-term securities and longer-term ones. The model suggested by the research can help investors and fixed income analysts in their decision making on the pricing of the securities.

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