Brazil’s real rose after the government said it is ready to face any crisis while the central bank stepped up support for the currency following a rout that sent it to a record low last week. The real advanced 2 percent to 4.0283 per dollar at 3:50 p.m. in Sao Paulo after earlier falling as much... Continue Reading →
Brazil Currency Volatility Climbs as Central Bank Adds Support
Brazil’s real swung between gains and losses, with a measure of volatility surging to the highest in four years, as the central bank stepped up support for the currency following a rout that sent it to a record low last week. The real fell 0.3 percent to 4.121 per dollar at 10:36 a.m. in Sao Paulo... Continue Reading →
Brazil’s Record Overseas Borrowing Comes Back to Bite Companies
Brazilian companies including state oil producer Petrobras are at risk from a weakening real after they issued a record amount of debt in foreign currency. The mismatch prompted PresidentDilma Rousseff to say over the weekend that she’s “extremely concerned” about the situation. Borrowing in overseas markets by non-finance companies reached a record $137 billion last... Continue Reading →
The Real closes a tumultuous week below R$4.00 to the dollar.
The Brazilian currency closed the most volatile week more stable at R$3.97 to the US dollar after the monetary authorities intervened heavily to stop the speculation. Was it a speculative attack on the currency or major lack of confidence? With reserves of U$370 billion you might rule out an speculative attack. Lack of confidence of... Continue Reading →
What a day for the Real – USD closes at R$3.99
After a dramatic opening of the US dollar at R$4.23, an all time high, the Brazilian currency rebounded and the US dollar closed at R$3.99. A 5% swing from high to low. It gives you an idea of the tremendous uncertainly the country and economy are suffering. Can you imagine being a multinational CFO and... Continue Reading →
In Brazil’s Market Meltdown, a Wave of Panic — Then Silence
As Brazilian markets went wild this week, trading desks fell silent. Unlike previous scares that rocked Latin America’s biggest economy -- a 50-minute selloff triggered by a blackout, for example, or fear a corruption scandal is getting ever closer to the presidency -- this time around there’s no shouting as clients call demanding updates or... Continue Reading →
Odebrecht Bonds Plunge as Petrobras Cancels Drill Ship Contract
Bonds backed by four Odebrecht drilling rigs plunged to the lowest since they were issued after Brazil’s state oil company canceled a contract to rent one of the ships. Odebrecht Offshore Drill Finance’s $1.5 billion of bonds due 2022, which are backed by cash flows coming from the drill ships, fell 13 percent to 25... Continue Reading →
UPDATE 1-Brazil 5-yr CDS jump to 7-yr high, dollar bonds tumble 2-3 cents
Brazilian debt insurance costs jumped to their highest in almost seven years on Thursday and sovereign dollar bonds fell 2-3 cents across the curve on fears of a deepening political and financial crisis. Other emerging assets also sold off as world stocks slid towards two-year lows but the biggest losses came in Brazil where the... Continue Reading →
These Charts Tell the Story of Brazil’s Economic Turmoil
The selloff in Brazilian assets has picked up pace as President Dilma Rousseff fends off impeachment speculation less than a year into her second term and struggles to win lawmakers’ support for measures to shore up the nation’s accounts. “What is really amazing about it is the speed of the deterioration since the election,” says... Continue Reading →
Emerging Markets Are Facing a Big Foreign FX Debt Bill
The extent of emerging markets' foreign-currency borrowing binge is laid bare in new number-crunching from CreditSights. With EM currencies down a collective 15 percent since the start of the year, the cost of repaying debt and loans denominated in foreign currencies, such as the U.S. dollar and the euro for EM countries, is likely to increase. With that scenario in... Continue Reading →
Brazil Energy Insight 