BlackRock's Rick Rieder Says Firm Has 'Dipped a Toe' in Brazil

  • Rieder says China's decision to push growth helps Brazil
  • BlackRock is also investing in Indonesia, Mexico, he says

Rick Rieder, chief investment officer of global fixed income at BlackRock Inc., said his firm is "dipping a toe" into Brazil as the currency and fixed-market markets have rallied.

Brazil at some point will ease monetary policy and interest rates are pretty attractive as long as the economy doesn’t run a negative 4 percent gross domestic product, Rieder said on Bloomberg TV. Brazil’s real has risen this year as the push to impeach President Dilma Rousseff has gained traction, and investors speculate that a change in government could help growth.

"You have to be a bit careful about Brazil," he said. "But we dipped a toe in and you always run the risk of losing that toe."

Rieder said China’s decision not to significantly devalue its currency again and the rise in leverage to promote growth bodes well for emerging markets that supply the world’s second-largest economy. He said Mexico is undervalued and that BlackRock has added to its position in Indonesia.

"The hope is that if China is stable, and I think people underestimate how big a deal that is to Brazil and other economies, that the growth paradigm stabilizes and improves from here," said Rieder.

In Brazil, Rousseff has faced protests over accusations that she tried to obstruct a widespread corruption probe targeting her political party.

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