Brazilian Bonds Shunned by Structured-Note Buyers as Real Slumps
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Sales of notes tied to Brazil’s sovereign bonds are off to their worst start in 13 years as investors turn their backs on deteriorating conditions in Latin America’s biggest economy.
Banks sold $11.8 million of the securities through Thursday, the least since 2002 and less than a third of the total for the same period last year, according to data compiled by Bloomberg. In all of 2014, banks issued $493 million of notes tied to Brazil and state-owned oil company Petroleo Brasileiro SA. This year, they’re on pace to sell less than $50 million.