Fibria, Caixa blowouts beat Brazil worries

By Oliver West
08 May 2014

Concerns over Brazilian economic growth are apparently not strong enough to prevent issuers from the country making the most of bond investors’ desperate search for yield. First Caixa Econômica Federal and then Fibria Celulose issued tightly-priced, well oversubscribed deals at a larger than originally indicated size this week.

Brazil’s lagging economic growth and worsening fiscal position have dragged on credit spreads in the country but Brazilian bonds have performed particularly well in recent weeks and new issuance has picked up.

“There were definitely some investors that started the year feeling the pessimism was overdone,” said one ...

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