Be a Millionaire? (Schwartsman)

Alexandre Schwartsman sent and authorized the circulation of your technique note published by Santander, Who Wants to Be a Millionaire? (7/7/2010). It concludes: “The negative correlation between the Selic rate and the implicit debt cost observed in the past two years is not, however, a structural feature. As the spread between the Selic rate and rate at which the government lends to BNDES rises, the implicit cost should go up as well, an effect now likely to be a magnified by a higher share of BNDES credits relative to net debt”. (PDF attached)