Our partner Matheus Corredato Rossi was featured in a Valor Econômico article on the National Monetary Council’s (CMN) new rule for Credit Rights Investment Funds (FIDCs) and its impact on the market.
The measure restricts the ability of FIDCs to purchase credits or rights (“legal claims”) that depend on legal proceedings or arbitration cases that have not yet been definitively concluded, primarily affecting managers who invest in companies in financial difficulty and distressed assets – a market known as “special situations”.
According to Matheus, as a result of the change, the economic returns on ‘legal claims’ will be further squeezed.