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

Reuters

Brazil's central bank banned on Thursday the use ofmortgage-backed bonds, known in the domestic fixed-incomemarkets as CRIs, as collateral for the issuance of othermortgage-linked securities such as letras de créditoimobiliário, or LCIs. The decision was published on the bank'sregulatory newswire Sisbacen.

The decision takes effect immediately.

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