Banco do Brasil Bondholders Burned as Executives Poached
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President Dilma Rousseff’s decision to transplant two state-bank executives to Petroleo Brasileiro SA didn’t sit well with the oil company’s investors. Banco do Brasil SA bondholders aren’t fans of the move either.
The lender’s $2.5 billion of notes have tumbled 9.7 percent to a record low 76.913 cents on the dollar since Feb. 6. That’s the day Rousseff named Chief Executive Officer Aldemir Bendine and Chief Financial Officer Ivan Monteiro to the same positions at Petrobras, which is at the center of the country’s biggest-ever corruption scandal.