Reliability of Banco Master CDBs after the liquidation
The recent liquidation of Banco Master has reignited the debate on the reliability of Banco Master CDBs and the risks assumed by investors in fixed-income products. In a report by Broadcast | Agência Estado, our partner Carlos Portugal Gouvêa analyzed the impacts of this scenario, bringing important insights for those seeking to better understand the credit risk involved in investing in bank deposit certificates (CDBs).

According to the bank’s financial statements released in December 2024, there were almost BRL 31 billion issued in Banco Master CDBs. The main attraction of the product was the promise of high returns, with yields reaching up to 140% of the CDI (Interbank Deposit Certificate). Precisely because it offered returns above the market average, the Banco Master CDB drew the attention of investors looking for higher profitability.

Carlos stresses that it is essential to look at the percentage paid by each financial institution. In general terms, a CDB reflects the average remuneration of banks on the loans they grant to one another. Thus, when an offer significantly exceeds 100% of the CDI, the investor must understand that they are taking on a risk that is higher than the market average. In the case of the Banco Master CDB, this yield differential is a clear sign of higher credit risk.

Our partner also points out that, if an investor decides to take on greater risk in part of their portfolio, it is crucial that this exposure remains within the coverage limits of the Credit Guarantee Fund (FGC), currently BRL 250,000 per individual or legal entity, per institution. In the context of the Banco Master CDB, respecting this limit is a practical way to mitigate losses in extreme events, such as the liquidation of a bank.

In this sense, the Banco Master CDB case reinforces the importance of assessing not only profitability, but also credit risk and the protection offered by the FGC in any investment decision.