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Troubled Times in Latin America Fail to Dull Brazil's Sheen

  • Pimco and BlackRock upbeat on growth and reform agenda
  • Country risk as measured by 5-year CDS is at six-year low
Brazil Markets Fall On Report Of Ex-President Temer's Arrest
Photographer: Patricia Monteiro/Bloomberg
Updated on

For all its political woes and still-stale economy, Brazil is standing out to investors as an unlikely island of stability as trouble brews across Latin America.

Money managers from Pacific Investment Management Co. and BlackRock Inc. are among those bullish on the nation’s assets. The main reason is the extensive reform agenda of the government, which after successfully overhauling a burdensome pension system now plans to tackle everything from a notoriously complicated tax system to a bloated state structure. The central bank has added to the optimism by slashing interest rates to a record as inflation runs below the target.