Brazil lifts $1.5bn at crest of emerging bond wave — then prices crash back

16 Jan 2004

Brazil launched one of its most successful bond issues ever this week — a blow-out $1.5bn 30 year global — only to find that this year’s dizzying bull run in emerging market debt ran out shortly after launch.

By then, Brazil was home and dry with a deal increased from $1bn and priced at a yield of just 8.75%. But the sovereign’s secondary spreads rode a rollercoaster — soaring more than four points on the break, only to plunge hours later as investors suddenly moved to take profits.

Brazil’s sovereign peers ...

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