Buy Brazil Real Bonds Due in 2022 on Rate Cuts, Barclays Says
May 15 (Bloomberg) — Investors should buy Brazil’s fixed- rate real-denominated bonds due in 2022 to take advantage of further cuts in interest rates and a stronger local currency, Barclays Plc. said…..
… The tax on earnings from savings accounts of 50,000 reais ($23,700) or more will go into effect next year if approved by congress. The government is concerned investors will abandon the debt funds it relies on for bond sales as the benchmark interest rate is set to drop below 10 percent, and turn to savings accounts, which by law guarantee at least a 6 percent return.
…. In a separate note to clients, Barclays strategists predict the Brazilian currency may strengthen to 2 reais per dollar in a month.
Last Updated: May 15, 2009 09:52 EDT
via Buy Brazil Real Bonds Due in 2022 on Rate Cuts, Barclays Says – Bloomberg.com.