Three Pulled Bank Bond Sales Show Probe Pain: Brazil Credit
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Banco Bradesco SA and Banco Industrial e Comercial SA withdrew bond offerings as a global market rout and an investigation into alleged bank fraud pushed Brazilian corporate borrowing costs to a seven-week high.
Average yields on Brazilian company bonds climbed 12 basis points, or 0.12 percentage point, yesterday to 6.07 percent, the highest since Sept. 24, according to JPMorgan Chase & Co.’s CEMBI bond index. Russian corporate bond yields rose 10 basis points while borrowing costs for Indian companies increased three basis points. Emerging-market bonds tumbled and global stocks sank on speculation the debt crisis in Ireland, Greece and Portugal is worsening.