Buy Brazil Inflation-Linked Bonds, Swiss & Global Says
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Brazilian inflation-linked bonds may appreciate as the country’s economy grows and its credit profile improves, according to Alessandro Ghidini from Swiss & Global Asset Management Ltd.
The real yield on inflation-linked bonds, whose principle is adjusted to compensate for consumer price rises, may fall by about 1 percentage point over the next year or so as the bonds rise in value, Ghidini, who helps manage about $1.2 billion in emerging-market debt for Swiss & Global, said in a phone interview yesterday.