Political Risk Latin America Blog @PolRiskLatam

BlackRock bucks the trend in Brazil

Posted in News and Articles, Political Risk by politicalrisklatam on February 17, 2011

by Jonathan Wheatley for Financial Times – Beyond Brics, February 17th, 2011.

Brazil, it seems, can’t do anything right. The government’s walkover victory in a crucial vote to restrain the national minimum wage on Wednesday night was one more demonstration of a commitment to fiscal austerity that investors just can’t bring themselves to trust. Figures out on Thursday from EPFR Global, which monitors fund flows, showed a rising preference for Brazilian bonds over equities as investors worry that slower growth will hurt corporate earnings.

But one of the biggest investors in Latin American equities disagrees. Will Landers, managing director for Latin America at BlackRock, which has $10.2bn under management in the region, is overweight Brazil and has been building positions as others pull out. (continue reading… )



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