Emerging Markets

Since October 2010, Brazilian sovereign bonds underperformed our reference index, JP Morgan’s Emerging Market Bond Index (EMBI) Global. Reassessing the valuation of these bonds, we find that they are now fairly priced on average. However, we note that some bonds … Continue reading →

EM Credit View We believe that sovereign risk concerns in the EU will sustain volatility in the near term, but eventually give way to a path of EM spread compression in 1Q11. Global and EM macro momentum has turned more favourable, which should support … Continue reading →

The market expects Rousseff's administration to increase the government’s intervention in the economy. State-owned enterprises such as Petrobrás, Eletrobrás, and the National Development Bank (BNDES) might play a key role. There is also a risk that the central bank might tolerate somewhat higher inflation, … Continue reading →

Financial Pacific: Emerging Markets, Fixed Income Research (third party) september 23.2010 View more documents from Financial Pacific.

Hungary is at risk of being downgraded by the main rating agencies, which all have a negative outlook on the sovereign due to its lack of financial safety net and debt levels close to 80% of GDP. Even though such a downgrade is … Continue reading →