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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 →
Petrobras – Market value below R$100 billion At the close of the stock market last night, the market value of Petrobras stood at R$99.68 billion. Exactly 5 years ago today, Petrobras celebrated the world’s largest corporate mega capitalization ever of R$125 billion, Petrobras market value jumped to R$321 billion. To many, this was the beginning... 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 →
Brazil’s lower house leader Eduardo Cunha gave opponents of President Dilma Rousseff hope by saying in a report he may be able to accept an impeachment request that is based on misdeeds committed in a prior presidential term. Opposition leaders have filed a request with Cunha to impeach Rousseff based on charges she doctored fiscal accounts,... 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 Supreme Court voted on Wednesday to move part of the country's largest-ever corruption probe to another judge, challenging the notion that all pieces of a case that initially focused on state-run oil firm Petrobras are legally linked. Justice Dias Toffoli argued that an investigation into whether President Dilma Rousseff's former chief of staff Gleisi... 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 →
