State-run companies are realizing government backing isn’t what it used to be.
Tumbling commodities, a corruption scandal ensnaring Petroleo Brasileiro SA and slowing global growth are sapping demand for so-called quasi-sovereign debt across emerging markets, with state-backed companies in Brazil, South Africa, Colombia and Mexico faring the worst. Investors were demanding 1.09 percentage points more than sovereign debt to own the bonds of 200 state-run issuers this month, up from 0.63 percent in December, according to Barclays Plc, whose indexes include $556 billion in quasi-sovereigns.
Brazil Energy Insight 
Leave a comment