FINEWS LATAM-Brazil to ban use of mortgage bonds as collateral for other debt

November 14, 2013

Brazil's central bank banned on Thursday the use of mortgage-backed bonds, known in the domestic fixed-income markets as CRIs, as collateral for the issuance of other mortgage-linked securities such as letras de crédito imobiliário, or LCIs. The decision was published on the bank's regulatory newswire Sisbacen.

The decision takes effect immediately.