Brazil Corporate Debt Market Is Facing a ‘Snowball Effect’: JPM

The market for Brazilian corporate bonds is facing a “snowball effect” after several distinct debt events in a short period of time against a backdrop of deteriorating credit markets in the developed world and tight spreads, according to JPMorgan.

• The “sell first, ask later” response — particularly in Raízen’s case — reflects investor nervousness about incurring losses “that would chip away at an otherwise stellar year,” analysts led by Alisa Meyers wrote in a note
  • But recent episodes have largely stemmed from specific industries with challenges or from credits whose “idiosyncratic risks were well telegraphed”, the note reads
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