128March2019Brazil:Afurtherincreaseinnon-residents’shareoflocalpublicdebtNon-residents'shareoflocalpublicdebtremainsstableThelatestdatareleasedbytheMinistryofFinanceshownon-residents’shareofBrazilianlocalpublicdebtincreasedby5%(BRL22bn)thisFebruary,nowatBRL455bn(~USD121bn).Inflowsfromnon-residentsamountedtoBRL21.5bn(~USD5.7bn).Table1andFigs.1-4:BreakdownofpublicdebtSources:BloombergLLP,Brazil’sMinistryofFinance(MinistériodaFazenda),BNPParibasBRL(bn)Feb-19m/m%y/y%Jan-19Feb-18DomesticPublicDebt3,732%ofTotal2%8%3,669%ofTotal3,457%ofTotalFinancialInstitutions82522.1%2%9%80722.0%75922.0%LocalFunds1,01627.2%2%8%99327.1%94527.4%PensionFunds91624.6%0%9%91825.0%84424.4%Non-residents45512.2%5%6%43311.8%42812.4%GovernmentInstitutions1544.1%1%1%1534.2%1524.4%InsuranceCompanies1564.2%0%17%1564.2%1343.9%Others2105.6%0%8%2095.7%1935.6%PublicDebtHoldingsPublicDebtHoldingsbyForeigners(%)43.6%48.2%3.8%3.7%0.7%Fixed-ratecouponbonds(NTN-F)Fixed-ratebulletbonds(LTN)Inflation-linkedbonds(NTN-B)Floating-rateBondsOthers22.1%27.2%24.6%12.2%4.1%4.2%5.6%FinancialInstitutionsLocalFundsPensionFundsNon-residentsGovernmentInstitutionsInsuranceCompaniesOthers11%14%17%20%250350450550Jan-15Dec-15Nov-16Oct-17Aug-18Foreigners'participationinBrazilianlocaldebt(BRLbn)Foreigners'participationinBrazilianlocaldebt(%,RHS)(20)(10)-102030Jan-15Dec-15Nov-16Oct-17Aug-18MonthlyForeigners'Flows(BRL,bn)LATINAMERICASTRATEGYPleaserefertoimportantinformationattheendofthereportFOCUSEMERGINGMARKETS|LATAM28February2019SamuelCastroEM/LatamStrategist+551138413492AndreDigiacomoEM/LatamStrategist+551138413445LucaMaiaEM/LatamStrategist+551138413447BancoBNPParibasBrasilS.A.KEYMESSAGESNon-residents’shareofBrazilianlocalpublicdebtincreasedby5%m/mthisFebruary.Inflowsfromnon-residentsamountedtoBRL21.5bn(~USD5.7bn),accordingtothelatestdatareleasedbytheMinistryofFinance.OurcalculationssuggestthecurrentpublicdebtexposurefornominalratesisUSD60mnDV01,andthemonthlydecayisUSD1.8mn.Publicdebtexposureforrealrates(inflation-linkedb...
