Quantitative Eliva Press Quantitative Methods and Asset Pricing of Judicial Claims in Brazil: An Institutional Framework for Precatórios Funds Under the EC 136/2025 Regime

How should judicial claims be valued as financial assets? Brazil's precatórios market has evolved into one of the country's most sophisticated alternative investment segments. Constitutional Amendment 136/2025 introduced a new institutional framework that significantly reshapes the legal certainty, liquidity, and pricing dynamics of these judicial receivables, creating new opportunities-and new challenges-for investors, fund managers, financial institutions, and policymakers. This book develops a rigorous quantitative framework for valuing Brazilian judicial claims by integrating financial economics, institutional analysis, and legal risk assessment. Rather than treating precatórios as static legal credits, the author models them as alternative fixed-income assets whose value depends on discount rates, duration, inflation, sovereign risk, judicial uncertainty, and regulatory changes. Drawing upon asset pricing theory, discounted cash flow analysis, stochastic risk modeling, and institutional economics, the book proposes practical methodologies for portfolio construction, risk management, and valuation under the post-EC 136/2025 regime. It also examines the implications for investment funds, securitization structures, secondary market liquidity, and capital allocation. Bridging the disciplines of finance and law, Quantitative Methods and Asset Pricing of Judicial Claims in Brazil offers academics, institutional investors, attorneys, policymakers, and finance professionals a comprehensive reference for understanding one of Latin America's most distinctive financial markets.