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Concerns that Brazil may lose its coveted investment grade credit rating are again on the rise among government officials and investors who worry that President Dilma Rousseff's austerity push won't fully offset plunging government revenues. As Brazil prepares for a crucial ratings review by Moody's Investors Service in the third quarter, members of Rousseff's economic... Continue Reading →
Brazil’s real is headed for further declines in the next six months if you believe the currency’s three most accurate forecasters. Brazil’s currency was the biggest loser among 16 major currencies tracked by Bloomberg in the first six months of the year, dropping 14 percent. The slide mostly reflected concern regarding the implementation of a... Continue Reading →
The real depreciated 0.9 percent to 3.1255 per dollar at 10:56 a.m. in Sao Paulo. Swap rates, a gauge of expectations for changes in borrowing costs, on the contract maturing in January 2017 decreased 0.1 percentage point to 13.72 percent. Read More
A group of five Brazilian banks will refinance about 11.5 billion reais ($3.6 billion) in loans for ailing Sete Brasil Participações SA for a further 45 days, in a bid to keep the oil rig maker afloat, two sources with direct knowledge of the matter said on Thursday. State banks Banco do Brasil SA and... Continue Reading →
The staying power of an ever-widening corruption scandal in Brazil has bond investors bracing for more pain. That’s stoking pessimism among bond investors already saddled with the worst losses in two years as the damaging effects of the scandal linger seven months after it surfaced. The nation’s dollar-denominated notes have slumped 1.5 percent in the... Continue Reading →
The cut in Petrobras's investment plan for the period 2015 to 2019 will be close to 40%, with the new budget around $ 130 billion, says real time service agency Broadcast. Last year, when the company was still chaired by Graça Foster, the investment goal was $ 220.4 billion in five years. But, given the... Continue Reading →
Just when bond investors were getting comfortable with the idea that most of the fallout from Brazil’s largest bribery probe was behind them, new arrests are sending a painful reminder that it isn’t over yet. Bonds issued by Odebrecht SA plunged on Friday after Chief Executive Officer Marcelo Odebrecht was detained by police investigating allegations... Continue Reading →
Brazilian banks will need to increase provisions set aside for losses on loans to Odebrecht SA after its chief executive officer was arrested Friday, people familiar with Brazil accounting requirements said. Read More
Multi-point price drops in bonds issued by Odebrecht dominated LatAm credit markets' attention on Friday following news that the Brazilian construction firm's CEO had been arrested. Read More
Investors know times are tough in Brazil when debt-collection companies are among the best investments. It’s not hard to see why it might be a good time to invest in debt collection. Economists say Latin America’s largest economy is heading for its deepest recession in 25 years, and households are more indebted than ever before.... Continue Reading →
Brazil Energy Insight 