, Columnist
The Brazilian Bond Blowout
The economy's a wreck and analysts are gloomy, but government debt is on the rise.
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Analysts are finding a lot to dislike about Brazil right now. But bond investors are finding a lot to love.
Debt investors are enjoying some big returns for taking a risk on the nation late last year, and some investment firms predict the profits will keep on coming. Brazilian government bonds have gained 1.4 percent so far this month and 4.9 percent this year, according to Bank of America Merrill Lynch data. Even speculative-grade bonds of Brazilian companies have posted positive returns while similarly rated debt has fallen in the U.S.