
"Interest Rates at 14%"—Korean Retail Investors Pivot from U.S. to Brazilian Bonds, Reigniting Emerging Market Rally?
created At: 5/4/2025

Neutral
This analysis was written from a neutral perspective. We advise you to always make careful and well-informed investment decisions.
9
0
0
Fact
-3-month return on Brazilian bond funds: +12.95%
-Korean net purchases of Brazilian bonds up 53% YoY
-Brazil’s policy rate at 14.25%, government bond yields in the mid-14% range
-The Brazilian real (BRL) is up ~10% YTD vs. the USD
Opinion
Brazilian bonds are drawing strong investor interest due to high yields, stable economic indicators, and expectations of commodity export gains amid renewed U.S.-China trade tensions. Easing interest rate expectations and the strength of the Brazilian real are also boosting their appeal.
Core Sell Point
Despite the appeal, Brazil remains a non-investment grade (Ba1) country, posing structural risks such as currency volatility and sovereign default.
9
0
0
Comments
0
Please leave a comment first