Gross Says Brazil Debt Attractive, Rates ‘Significantly High’ - Bloomberg.com
Jan. 6 (Bloomberg) -- Brazilian debt is “attractive” because the country’s inflation-adjusted interest rates are “significantly” higher than in the U.S., Bill Gross, manager of the world’s largest bond fund at Pacific Investment Management Co., said in an interview on CNBC.
“We still like selected emerging markets on the fixed- income side to the extent that some emerging markets, like Brazil, have significantly high real interest rates,” said Gross in the interview. “I’m talking about 4, 5, 6 percent higher than the U.S. That’s an attractive situation if the credit is an improving one. Certainly that’s the case in Brazil.”
Brazil’s zero-coupon local-currency bond maturing in July 2011 yielded 11.26 percent today, compared with its annual inflation rate of 4.2 percent in November. Yield on the benchmark two-year Treasury note was 1 percent today, compared with the inflation rate of 1.8 percent in the U.S.
To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net
Last Updated: January 6, 2010 15:46 EST"
About Me
- Waldemar Jezler
- For over 30 years, Brazilian-American investment banker Waldemar Jezler has worked in the finance sector. Jezler earned his Bachelor's degree in Civil Engineering from the University of São Paulo in Brazil and then went on to attend Harvard Business School for his MBA. While at Harvard, Jezler was highly involved in extracurricular activities, including a term as President of the Ibero American Club.