Junk Status Looms as Rousseff Rouses Bond Angst: Brazil Credit
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The prospect President Dilma Rousseff will be re-elected is putting Brazil on the verge of junk status in the bond market.
The extra yield that investors demand to own Brazil’s debt securities instead of Treasuries is within 0.3 percentage point of the average for speculative-grade bonds, the closest the nation has been to junk since it ascended to investment grade in 2008, data compiled by JPMorgan Chase & Co. show.