Tag Archives: Brazilian bonds
Navigating Brazil’s Currency Volatility with USD Credit
Brazil’s fixed income market is one of the deepest in emerging markets, with an outstanding government debt of over BRL 8 trillion (roughly 75% of GDP) and a corporate bond market dominated by floating-rate instruments tied to the interbank deposit certificate (CDI). Domestic market participants are accustomed to high nominal yields; local treasury bills linked…
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SPIVA Latin America Year-End 2020 Scorecard: Active Managers Missed an Opportunity
The recently published SPIVA® Latin America Year-End 2020 Scorecard shows that the volatile environment of 2020, though potentially favorable for high-conviction active managers, did not necessarily translate into success for active managers. SPIVA scorecards measure the performance of active funds against an appropriate benchmark. For Latin America, S&P Dow Jones Indices began publishing the scorecard…
- Categories Equities, Fixed Income
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- Equities, Fixed Income
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Active Managers’ Outperformance in Brazilian Bond Funds – Skill or Price Distortion?
There were impressive results for active managers in the Brazil Corporate Bond Funds category, with 93.6% of them beating the benchmark in March 2020 and 88.2% Q1 2020. However, were these performance results due to true skill? This outperformance may be related to a market distortion. On the one hand, Brazil’s corporate bond funds experienced…
- Categories Fixed Income
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