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Brazil Debt May Be Under Pressure as Japan Sends Funds Home

Debt linked to Brazil’s real may fall as Japanese investors, the largest holders of the bonds, bring funds home to pay for reconstruction following the nation’s earthquake, according to Guggenheim Capital Markets.

Japanese investors hold at least $50 billion worth of real-linked debts issued by the World Bank, European Bank for Reconstruction & Development and Goldman Sachs Group Inc., according to Andrew Brenner, managing director at Guggenheim, a New-York based brokerage for institutional investors.