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Brazil

Forget Scandals, Brazil Risks Derailing Recovery Through Fiscal Mismanagement

Brazil's fiscal crisis is becoming increasingly pronounced in the deterioration of public services and, if nothing is done, the budget deficit target of BRL139bn this year will not be met.

1 Aug 2017

Signal Versus Noise: The Case of Brazil

Brazil offers a good example which illustrates the difference between signal and noise in investing. A complete mess from a journalistic perspective, Brazil has been one of the best investments in global fixed income markets and continues to offer an attractive investment proposition. We examine why countries with so much bad news can be such excellent investments.

25 Jul 2017

Latin America Credit Markets Brief: July 5 - July 19

CAF approves US$592mn credit facility to Latam nations - Grupo México to get US$1.55bn loan from BBVA and Credit Suisse - A major new oil field discovered in Mexico – Ex-Brazil leader Lula convicted - Brazil's Senate approves labour reform bill - The province of Buenos Aires taps European markets with EUR500mn bond – PDVSA seeks to renegotiate debt

19 Jul 2017

Latin America Credit Markets Brief: June 22 - July 5

Global debt reaches US$21tn – Mexico’s Central Bank completes annual hiking cycle – Brazil’s Temer indicted with corruption charges – Banco Mercantil del Norte places US$900mn – Argentina’s Cordoba province taps international markets with US$450mn bond – Colombia Movil closes US$300mn syndicated loan – Ecuador downgraded by S&P from ‘B’ to ‘B-‘ – Discounted Venezuela bonds now trading on Wall…

5 Jul 2017

CASE STUDY: BNDES Prices Flat to Secondaries on Largest Brazilian Green Bond to Date

The Brazilian National Development Bank (BNDES) made its first foray into the capital markets since 2014 a huge success when it priced the country’s largest green bond flat to its secondary curve, tapping into new liquidity pools in Europe and extending the tenor of its existing debt.

5 Jul 2017

Brazil: The Silence of The Streets

In the midst of a political crisis that is threatening the mandate of Michel Temer, a president with single-digit approval ratings, the silence of the streets seems strange to many analysts and critics of a supposedly passive society.

4 Jul 2017

CASE STUDY: Minerva Sees Aggressive Pricing on US$1bn Bond

Brazil beef giant tapped Minerva took advantage of favourable conditions in emerging markets to sell a US$1bn bond due 2026, which priced inside the company’s yield curve at 6.625%.

21 Jun 2017

CASE STUDY: Wheeler-Dealer Iochpe Maxion Rolls Out a US$275mn Syndicated Loan

In the Summer of 2016, automotive wheel producer Iochpe Maxion led by example to become one of the few Brazilian corporates to tap the dollar denominated syndicated loan market with a US$275mn dual-tranche term loan facility that was 43% oversubscribed.

20 Jun 2017

Brazil: The Central Bank Got It Right

Central bankers in Brazil don’t have easy lives, as shown by recent events. Just when the economy seemed to be heading in the right direction, up pops another political crisis that has increased uncertainties – particularly on the reform front. The social security reform is the main focus, due to its consequences on the government’s solvency, but monetary policy is very much in play.

14 Jun 2017

Brazil: Where Fiscal and Monetary Priorities Need Alignment

The signals sent by the Planalto are that President Temer intends to dig in and fight to preserve his mandate. There is some room for this, politically and economically. Although his situation is difficult, there is no climate of “Down with Temer” in the same way “Down with Dilma” manifested. The probable reason is the gradual recovery of consumer and business confidence. The pattern of net…

9 Jun 2017

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