Bond investors face binary Brazil decision

By Oliver West
16 Oct 2014

Brazilian bond prices indicate that investors are unsure of the outcome of the second round of the country’s elections on October 26, though observers warn that even if the market’s favourite Aécio Neves wins, the road ahead for Brazil is not smooth.

Centre right candidate Neves is slightly ahead of the centre-left president Dilma Rousseff. However, the advantage of being the incumbent candidate is historically significant in Latin America and the normally optimistic LatAm DCM community is tending towards pessimism. Nevertheless, that pessimism is not priced in, say bankers.

“The ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial