Fixed Income: Nearly Half of Brazilians Hold These Assets—How to Find Promising Returns? Discover This Tool
- Why Is Fixed Income Gaining Popularity in Brazil?
- Should You Look Beyond Brazil for Fixed Income?
- How Does the Fixed-Income Comparison Tool Work?
- What Are the Top Fixed-Income Picks in the U.S.?
- Why Diversify Globally?
- How to Access the Comparison Tool?
- FAQs
With Brazil's Selic rate at 15% per year, fixed-income investments have become a favorite among local investors. Over 100 million Brazilians now hold fixed-income assets, but many overlook opportunities abroad—like U.S. Treasury bonds offering 5% yields. A free comparison tool by EQI Research helps investors analyze cross-border fixed-income options, factoring in currency fluctuations and taxes. Dive into how diversification can boost your portfolio’s resilience and returns.
Why Is Fixed Income Gaining Popularity in Brazil?
Brazil’s sky-high Selic rate (15% annually) has turned fixed-income assets into the darlings of local investors. Data from B3 shows a 20% surge in investments between Q2 2024 and Q2 2025, with over 100.2 million CPFs (tax IDs) now holding these assets—nearly half the country’s population. CDs (Certificates of Deposit) and RDBs (Bank Deposit Receipts) dominate, attracting 99.1 million investors, while Treasury Direct claims another 3 million.
Should You Look Beyond Brazil for Fixed Income?
While Brazil’s yields are tempting, savvy investors are eyeing opportunities abroad. U.S. Treasury bonds, for instance, currently offer up to 5% annually—a standout rate by American standards. For Brazilians, currency appreciation (if the dollar strengthens) could further amplify returns. Plus, global diversification hedges against local economic volatility. The catch? Comparing cross-border options isn’t straightforward—until now.
How Does the Fixed-Income Comparison Tool Work?
EQI Research’s free tool lets investors pit Brazilian and U.S. fixed-income assets head-to-head. Users input variables like asset type, yield model, and maturity dates. The tool then calculates net returns after taxes and currency effects. In one example, a Brazilian CDB outperformed a U.S. bond tied to the CDI—but results vary based on individual scenarios.
What Are the Top Fixed-Income Picks in the U.S.?
U.S. Treasuries come in three flavors: short-term T-Bills (4–52 weeks), medium-term T-Notes (2–10 years), and long-term T-Bonds (20–30 years). As of August 25, 2025, 10-year bonds yielded 4.28%, while 20- and 30-year bonds neared 5%. Corporate bonds add another LAYER of choice. Remember: For Brazilians, dollar volatility and tax implications (like the 15% IOF on foreign investments) can make or break returns.
Why Diversify Globally?
Diversification isn’t just about chasing higher yields—it’s about risk management. Spreading assets across currencies and economies can shield your portfolio from local downturns. As one BTCC analyst noted, “In 2024, investors who allocated 30% to U.S. fixed income saw smoother returns during Brazil’s Q3 market correction.”
How to Access the Comparison Tool?
EQI’s tool is free for Money Times readers. Simply click the LINK below to download and customize analyses based on your target assets. No strings attached—just data-driven insights to optimize your fixed-income strategy.
FAQs
What’s the main advantage of U.S. fixed income for Brazilians?
Beyond competitive yields (4–5%), dollar exposure provides a hedge against BRL volatility. If the USD appreciates, your returns get a bonus boost.
Are U.S. Treasuries safer than Brazilian bonds?
Both are low-risk, but U.S. Treasuries benefit from the dollar’s reserve-currency status. That said, currency risk adds complexity for BRL-based investors.
How do taxes compare between the two markets?
Brazil taxes fixed income at up to 22.5% (progressive rates), while U.S. bonds face a flat 15% withholding tax for foreigners—plus potential BRL-USD conversion costs.
