Urbanization, cities and the spaces of financialization: analysis of the process of securitization of housing in Brazil

• Grant number: 19/10959-0
• Support Opportunities: Scholarships in Brazil - Post-Doctorate
• Effective date (Start): February 01, 2020
• Effective date (End): April 29, 2023
• Field of knowledge: Humanities - Geography - Human Geography
• Principal Investigator: Jeroen Johannes Klink
• Grantee: Marlon Altavini de Abreu
• Host Institution: Centro de Engenharia, Modelagem e Ciências Sociais Aplicadas (CECS). Universidade Federal do ABC (UFABC). Ministério da Educação (Brasil). Santo André , SP, Brazil
• Associated scholarship(s): 21/08214-6 - Urbanisation, financial markets and housing production:the gears of residential real estate securitization in Brazil, BE.EP.PD

Abstract

This research project intends to analyze and discuss the links that connect the different rounds of approximation between the built urban environment to a logic of profitability of finance, subjecting real estate to a format increasingly aligned with the dynamics of the financial market. These objectives aim to understand the connections between the expansion of the real estate valuation contexts through a spatial interpretation of the distribution of the securitized assets in the national territory. In this way, the privileged approach seeks to understand, through a specific financial instrument, Real Estate Receivables Certificates (CRI), a set of transformations that will structure, integrate and coordinate the circuit of investments in real estate assets in Brazil through the conversion of rights loans originated by the housing finance contracted by Caixa Econômica Federal, in securitized financial assets. In this sense, it positions the role and functions exercised by a public bank in the composition of the secondary market of real estate securities in Brazil. To that end, the approach developed by this analysis seeks to characterize: a) the particularities associated with the moments of inflection of this financial logic that begins to extend on a national scale, verifying the times, the intensities and the extent of this insertion; b) the conditions established by the Brazilian State in the creation of the links between real estate financing and the capital market, through an institutional structure that creates the necessary economic contexts for valuing and circulating real estate assets through real estate-backed securities markets; c) to detail the operations performed by Caixa Econômica Federal (CEF) between 2011 and 2020 through data extracted from Economic and Financial Reports made available, together with the Bank's own CRI issues; d) the inexorable urban spatial dimension that supports the dissemination of these real estate base titles, considering the projects that give them weight in their uses (residential and commercial) and their locations. (AU)