Urbanisation, financial markets and housing production:the gears of residential real estate securitization in Brazil

• Grant number: 21/08214-6
• Support Opportunities: Scholarships abroad - Research Internship - Post-doctor
• Start date: February 22, 2022
• End date: May 21, 2022
• Field of knowledge: Humanities - Geography - Human Geography
• Principal Investigator: Jeroen Johannes Klink
• Grantee: Marlon Altavini de Abreu
• Supervisor: Manuel Aalbers
• Host Institution: Centro de Engenharia, Modelagem e Ciências Sociais Aplicadas (CECS). Universidade Federal do ABC (UFABC). Ministério da Educação (Brasil). Santo André , SP, Brazil
• Institution abroad: University of Leuven, Leuven (KU Leuven), Belgium
• Associated to the scholarship: 19/10959-0 - Urbanization, cities and the spaces of financialization: analysis of the process of securitization of housing in Brazil, BP.PD

Abstract

This research project refers to an internship abroad proposal to be conducted at the University of Leuven under Prof. Dr. Manuel Aalbers' supervision. The topic under study foresees investigating how agents in the real estate and financial make use of various economic, financial and institutional models to move forward in the process of real estate securitization and to transform urban space in a tradable asset generating periodical incomes. The analysis aims to highlight recent developments the securitized assets Market in Brazil, identifying the profile and the extent of emissions structured in the Securitization Terms, characterizing credit operations which elicited the securities issued by the agents who are using these papers as an alternative to financing, the mean time of operations and the pledged interest rate. Under this approach four key aspects will be analyzed to understand the process: 1) The social constitution of securitized assets; 2) The capitalization technique; 3) The pricing techniques; 4) Financial profit; 5) The interlinkages between the securitization and transformation of urban space at national level. Thus, this growing subordination of cities to the imperatives of financial markets supports the research challenges set by this project, this way, the completion of the research internship envisages in its objectives to make progress in the debate on the interweaving of real estate production and the financial capital, by emphasizing the relationship between the two markets, credit and finances on one hand, and the spatial distribution of these assets on the other. (AU)