A Review of Forty Years of the Brazilian Domestic Securities Debt (1964-2004)

Abstract

This article reviews the first forty years of the domestic federal securities debt in Brazil. This market was created in 1964 and reached consolidation through the seventies. In the eighties there were changes in debt composition. The Real Plan brought about a new environment for securities debt management and two major moves can be identified. First, the share of fixed rate bonds increased. Later on, indexation rose together while authorities opted for a widening in the average term. Besides offering a historical review, the article tries to contribute by incorporating the securities indexed to the exchange rate in the analysis, as this part has been subject of little attention in the literature.