World Cup Debacle Hurting Rousseff Seen in Brazil Swaps
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The worst World Cup defeat in Brazil’s history is worsening President Dilma Rousseff’s re-election chances. It’s also proving a boon for swaps traders betting her defeat will bolster the nation’s credit quality.
A Datafolha poll last week showing for the first time that there would be no clear winner in a runoff between Rousseff and opponent Aecio Neves is hastening a decline in the cost of insuring Brazil’s bonds against non-payment with credit-default swaps. The contracts have dropped 0.6 percentage point this year, the most among eight similarly rated nations after India.