Brazil Burns Firms From Pimco to Investec as $134 Billion Bond Bet Unravels
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For the foreign investors who’ve been pouring money into Brazilian bonds, their timing could hardly have been worse.
Lured by interest rates north of 12 percent, they boosted holdings of the nation’s local-currency debt to a record 432 billion reais ($134 billion) in January. That’s an increase of 29 percent from the year earlier, the government said last month. Pacific Investment Management Co. and Investec Plc are the two biggest overseas investors in Brazil’s fixed-rate bonds, data compiled by Bloomberg show.