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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 →
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 →
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 →
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 →
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 →
Despite the the U$5 billion intervention by the Brazilian Central Bank yesterday, the Real opened at R$4.23 to the USD. At 9:30 BRT the dollar has settled at R$4.2184, a gain of 1.76% over last night closing. Some analysts say that the USD could reach as high as R$5.00 by the end of the year... Continue Reading →
Brazil’s real fell for a fifth consecutive day and reached a new record low, with the rout in the currency gaining momentum as investors sell amid concern the country’s finances are deteriorating. Even as the central bank intervened to support the real, the currency tumbled 2.3 percent as of 4:47 p.m. in Sao Paulo to... Continue Reading →
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... Continue Reading →
Brazilian Real 1993-2015 The USD traded at 4.13 BRL on Wednesday September 23, according to interbank foreign exchange market quotes. The Brazilian Real averaged 1.88 from 1993 until 2015, reaching an all time high of 4.13 in September of 2015 and a record low of 0.01 in January of 1993.
At R$4.00 to the US dollar, Petrobras' massive debt has increased by R$70 billion compared to last quarter. This amount is equivalent to the company's divestment goal of U$15.1 billion. So much for reducing debt by selling assets. About 80% of Petrobras debt is US dollar denominated. At the end of last quarter total debt... Continue Reading →
