To see the damage done to bondholders of Brazil’s flagship oil company, just compare its yields to those of its lower-rated peer across the border in default-prone Argentina.
The rout in notes from the world’s largest junk-rated corporate issuer means Petroleo Brasileiro SA’s borrowing costs are now higher those for YPF SA, the oil company that Argentina nationalized in 2012. The extra yield investors demand to own Petrobras securities due in 2024 instead of similar-maturity notes from YPF jumped to a record 1.72 percentage points Tuesday. A year ago, YPF bonds were yielding 3 percentage points more.
Brazil Energy Insight 
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