Brazil's companies and investment banks are putting in some winning performances in the capital markets. While equity issuance in other countries has hit the brakes, Brazil has forged onwards and upwards. According to Dealogic, in 2006 to mid-August Brazilian issuers raised $8.9 billion from 28 deals. This already outpaces 2005's total of $5.9 billion from 21 offerings and leaves recent years ($800 million from six deals in 2003, for example) in the dust.
All this comes amid precarious times for emerging markets. Geopolitical instability and rocketing oil prices have led to the usual flight to quality by investors and caused an extended spring break for some Brazilian issuers. Unlike in other turbulent periods, however, they have rebounded quickly. Even more unusually, they have done so in the build up to an election, which in previous cycles has put the capital markets into hibernation.
This year there is far...