Americanas Fallout Fuels Painful Rout in Brazil Corporate Debt
- Bonds were pummeled by high rates, restrictive local market
- Brazil’s troubled corporate debt has surged to $11.9 billion
An advertisement for Americanas in Brasilia, Brazil, on Friday, Jan. 20, 2023.
Photographer: Gustavo Minas/BloombergThis article is for subscribers only.
Brazilian corporate bonds got hammered in February after the implosion of Americanas SA, further weakening the outlook for firms already wrestling with high borrowing costs.
Six of the 10 worst-performing issuers in Latin America this month are Brazilian companies, data compiled by Bloomberg show. Dollar-denominated notes from Gol, Atento and Light lost at least a quarter of their value, while Azul, Stone and BRF bonds delivered losses of between 10% and 15%.