Brazilian Bonds currently offer investors a yield of 6.17%, which is not bad at all, being 2.17% above US federal interest rates. Investment Highlights: USD-denominated; 10.60% annual coupon (day-count accrual based on time spent within the defined range); Annual issuer call – potential for early exit at attractive levels; Exposure to Brazil sovereign credit with a yield pick-up of +443 bps vs comparable bonds. Comparable Brazil Gov Bond (US105756CL22) yields ~6.17%. This structure offers over 4.4% additional yield in USD. If you would like to review the full documentation, stress testing, or suitability analysis—or secure an allocation—simply contact us below. Or if you would like to schedule a meeting to discuss this and other fixed income opportunities, please book a consultation in my agenda using the link below. We expect strong demand given the 10.60% USD yield and Brazil’s improving fundamentals. Let me know if you would like a personalized comparison to traditional bonds or other fixed-income alternatives. The post "High Yield Fixed Income Opportunity 10.6% – Yield 2.65% per Quarter: Open for the Next 2 Weeks!" appeared first on Newsroom Panama. Credit Linked Note on Brazil Government Annual Coupon: 10.60% p.a. in USD Maturity: December 2032 (7 years) but can mature early or be sold before maturity! Issuer Callability: Annual, first call after year 1 Underlying: US CMT 10Y (Daily Range Accrual 0%–4.50%) Minimum Investment: USD 500,000 Reference Entity: Brazil Government (BB) Why This Opportunity Now? 1. 4.43% more than the government bond pays and 8.43% higher than the Federal Interest Rate! The FED openly states their target is 2% and President Trump is constantly pressuring for lower rates. The 10Y US CMT is expected to trade largely within the 0%–4.50% range, supported by: Mean reversion in US yields; Improved inflation dynamics; Government intervention if rates approach 5%; Normalizing market volatility. This makes it highly probable that the note will accrue a large proportion of days, supporting the 10.60% annual payout. Dear Investor, We are pleased to introduce a high-yield opportunity designed for investors seeking strong fixed-income returns in USD while taking advantage of Brazil’s improving credit outlook. The Credit Linked Note uses the Brazilian Government Bond as its risk reference. Given the current situation, we feel that the chance of Brazil defaulting on its debt is pretty much zero in our opinion. The reference is the US Federal Interest Rate currently standing at 4%. Every day that the FED Rate is at or below 4.50% you will accrue an interest payment, and at the end of each quarter all the accrued interest will be paid. So if the FED Rate never goes above 4.50% you’re guaranteed 10.6% a year, which is what we forecast. The market expects 4 rate cuts and as such we feel it's very unlikely that the FED rate goes above 4.50% based on the chart below – once Federal Interest Rates plateau they tend to trend down. Although we like the risk return of these bonds, we have looked at a structure that could significantly increase the yield of these bonds. The new strategy that we have launched is a Credit Linked Note that pays a massive 10.60% return! Brazil’s CDS has sharply improved in 2025. The credit markets have seen a significant decrease in Brazil’s CDS spreads, signalling stronger confidence in the sovereign. If Brazil goes bankrupt you lose your investment; if Brazil doesn’t go bankrupt your money is safe. The 10.6% income, however, is paid based on a separate reference. (Chart data shows US 10Y CMT has remained mostly inside the range historically. A recent pullback offers what we believe is a compelling entry point before spreads resume tightening. I know most of you reading this will be asking what the heck is a daily range accrual feature???? So allow me to explain.
