Brazil's high yield bonds again attract foreign investors

Monday, April 7th 2014 - 06:36 UTC

Full article 6 comments

Brazil’s decision to hike its key interest rate to 11%, its highest level in two years, has again started to attract investors since there are also strong hopes that Brazil’s next president to be elected in October will rein in spending and adjust macroeconomic policies. Read full article

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ChrisR
“However the big question is whether Brazil’s currency, the Real, will sink further and wipe out returns on real-denominated bonds.”

ANYBODY stupid enough to invest converted dollars into these things deserves what they are going to get: POORER!

Lambs to the slaughter, baaa.
Apr 07th, 2014 - 11:28 am - Link - Report abuse 0
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GeoffWard2
I found that, when England was giving me a largely zero rate of interest, the high rates of the Brasilian bonds gave me a bit of leeway.
Many ex-pats were successfully living off the interest of the 10 yr bonds. High investment was the necessary criterion, but then, big money transferred from stirling to eg BoB Bonds had a high RoR; things have drifted since.
Apr 07th, 2014 - 12:41 pm - Link - Report abuse 0
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yankeeboy
Brazil and Argentina are going to try to devalue their way to prosperity. They will match each other's devaluation until one of them must give up.

It's a toss up to see who will give up first.
Apr 07th, 2014 - 01:30 pm - Link - Report abuse 0
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GeoffWard2
#3
Isn't this 'devaluation' what we all do with our own inflations and quantitative 'easings'?
Apr 07th, 2014 - 04:36 pm - Link - Report abuse 0
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yankeeboy
4. not quite
Apr 07th, 2014 - 04:37 pm - Link - Report abuse 0
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Conqueror
Brazilian “high yield” bonds. And who is going to be paying? Avoid latam for the next 100 years. What's the difference between fraudsters?
Apr 07th, 2014 - 06:32 pm - Link - Report abuse 0
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