High Yield Fixed Income Opportunity 10.6% – Yield 2.65% per Quarter: Open for the Next 2 Weeks!
Dear Investor,
We are pleased to introduce a high-yield opportunity designed for investors seeking strong fixed-income returns in USD while taking advantage of Brazil’s improving credit outlook. Brazilian Bonds currently pay investors a yield of 6.17% which is not bad at all at 2.17% above US federal interest rates. Given the current situation we feel that the chance of Brazil defaulting on its debt is pretty much zero in our opinion. Although we like the risk return of these bonds, we have looked at a structure that could significantly increase the yield of these bonds.
The new strategy that we have launched is a Credit Linked Note that pays a massive 10.60% return!!! 4.43% more than the government bond pays and 8.43% higher than the Federal Interest Rate!!!
Credit Linked Note on Brazil Government
Annual Coupon: 10.60% p.a. in USD
Maturity: December 2032 (7 years) but can mature early or be sold before the maturity!
Issuer Callability: Annual, first call after year 1
Underlying: US CMT 10Y (Daily Range Accrual 0%–4.50%)
Reference Entity: Brazil Government (BB)
Why This Opportunity Now?
1. Brazil’s CDS has sharply improved in 2025
The credit markets have seen a significant decrease in Brazil’s CDS spreads, signalling stronger confidence in the sovereign. A recent pullback offers what we believe is a compelling entry point before spreads resume tightening.
I know most of you reading this will be asking what the heck is a daily range accrual feature????
So allow me to explain. The Credit Linked Note uses the Brazilian Government Bond as its risk reference. If Brazil goes bankrupt you lose your investment, if Brazil doesn’t go bankrupt your money is safe. The 10.6% income however is paid based on a separate reference. The reference is the US Federal Interest Rate currently standing at 4%.
Every day that the FED Rate is at or below 4.50% you will accrue an interest payment and at the end of each quarter all the accrued interest will be paid. So if the FED Rate never goes above 4.50% you’re guaranteed 10.6% a year which is what we forecast.
The market expects 4 rate cuts and as such we feel its very unlikely that the FED rate goes above 4.50% based on the chart below – once Federal Interest Rates plateau they tend to trend down. The FED openly state their target is 2% and President Trump is constantly pressuring for lower rates.
The 10Y US CMT is expected to trade largely within the 0%–4.50% range, supported by:
- Mean reversion in US yields
- Improved inflation dynamics
- Government intervention if rates approach 5%
- Normalizing market volatility
This makes it highly probable that the note will accrue a large proportion of days, supporting the 10.60% annual payout.
(Chart data shows US 10Y CMT has remained mostly inside the range historically.)
Investment Highlights
✓USD-denominated
✓10.60% annual coupon (day-count accrual based on time spent within the defined range)
✓Annual issuer call – potential for early exit at attractive levels
✓Exposure to Brazil sovereign credit with a yield pick-up of +443 bps vs comparable bonds
Comparable Brazil Gov Bond (US105756CL22) yields ~6.17%
This structure offers over 4.4% additional yield in USD.
If you would like to review the full documentation, stress testing, or suitability analysis—or secure an allocation—simply contact us below:
Or if you would like to schedule a meeting to discuss this and other fixed income opportunities please book a consultation in my agenda using the link below:
https://calendly.com/empire-wealth/strategy
We expect strong demand given the 10.60% USD yield and Brazil’s improving fundamentals.
Let me know if you’d like a personalised comparison to traditional bonds or other fixed-income alternatives.
