Door opens for unwrapped 10-yr product from Brazilian banks.

A recent 10-year transaction by Banco do Brasil augurs well for longer-dated unwrapped Brazilian bank deals, sources said.

Despite talk that lead manager Deutsche Bank was initially having trouble getting a chunk of the paper off its book at the 6.55% pricing, players said the US$250 million deal proved appetite is there for maturities beyond the standard seven-year. "It's a sign of confidence in these institutions," said a market source active in the sector.

Backed by diversified payment rights (DPR), the transaction was the second unwrapped deal this year out of Brazil to pierce seven years, on the heels of a 25 billion (US$234 million) deal by Unibanco …