HALISTER1: Brazil Bonds Are ‘Cheap’ as Mexico’s Debt Best Avoided: Loomis

Brazil Bonds Are ‘Cheap’ as Mexico’s Debt Best Avoided: Loomis

(Bloomberg) -- Brazil and Argentina’s sovereign bonds are cheap and have room to rally, says Loomis analyst Bianca Taylor.
  • The firm, which oversees $240 billion, recommends an overweight position in bonds of both countries
  • “Brazil has its funding needs covered in the local market, so it has the chance to be very opportunistic in the international market,” she says
  • NOTE: Brazil Sells $1 Billion Overseas Bond After Borrowing Costs Sink
  • Mexico bonds offer too much risk at this moment as the country is likely to face “a couple of downgrades”: Taylor
  • Peru notes are best avoided as the Odebrecht scandal that spread to country is likely to hit the infrastructure sector, the main driver for the economy

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Bianca Taylor (Loomis Sayles & Co LP)

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