Brazil's BTG Pactual Bonds, Shares Slump After CEO Arrest
- Yields on most liquid bonds nearly doubled to 12.5% after news
- Arrest tied to Carwash investigation into builders, Petrobras
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Grupo BTG Pactual SA’s benchmark bond yields nearly doubled after the lender’s billionaire Chief Executive Officer Andre Esteves was arrested in a corruption probe on Wednesday.
Yields on the bank’s $1 billion in bonds due 2020, its most liquid dollar-denominated notes, surged 5.62 percentage points to 12.34 percent as of 5:45 p.m. in Sao Paulo, the highest since the notes were issued in January 2013, after news of the arrest. The notes slumped 16.7 cents to 73.65 cents on the dollar, a record low. The group’s units traded in Sao Paulo fell as much as 39 percent and pared losses after BTG announced a buyback program.