Brazil

For most observes it had already become a matter of time. Standard & Poor’s had already made Brazil a sub-investment grade borrower and both Fitch and Moody’s had Latin America’s largest sovereign on review for downgrade.

Good news from the US Federal Reserve — in the form of a more dovish rate announcement than some market participants had expected — brought a sanguine close to a turbulent week for credit derivatives and boosted equity markets, but only added to the pressure on emerging market countries and their currencies.

Brazilian sugar and ethanol producer Tonon Bioenergia has filed for bankruptcy after many months of battling low prices, and Standard & Poor’s is pessimistic on bondholders’ recovery chances.

Brazil took a step closer to sub-investment grade status on Wednesday when Moody’s placed its Baa3 rating on review for downgrade.

Huw Jenkins will need all of his powers of persuasion and banking know-how if BTG Pactual, where he is a founding partner, is to halt its downward spiral.

Brazil iron ore pellet producer Samarco Mineração’s bonds hit the mid 30s on Tuesday as Fitch reduced the borrower’s rating from BBB to BB- a month after two of the company’s dams burst in the state of Minas Gerais, causing heavy human and environmental damage.

André Esteves resigned from his positions as chairman of the board and chief executive of BTG Pactual on Sunday following his arrest on November 25 as part of Brazilian authorities’ investigation into corruption at Petrobras.

Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has bought back $640m of senior unsecured notes at a discount, taking advantage of sub-par dollar prices and its strong cash position to reduce its debt burden.

The arrest of BTG Pactual’s chairman and chief executive dragged the Brazilian banking sector into the Petrobras corruption investigation this week, as bond market participants said fears were running high that Lava Jato would uncover even more skeletons in the closet.

The arrest of one of the most respected figures in Latin American banking on Tuesday could be the start of a new painful chapter in Brazil’s corruption scandal, Latin American bond market participants have warned.

Banco Nacional de Desenvolvimento Econômico e Social (BNDES) will buy back $640m of senior unsecured notes at a discount, taking advantage of sub par dollar prices and its strong cash position to reduce its debt burden.

Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the Brazilian government-owned development bank, on Monday became the latest financial institution from the country to look to take advantage of depressed bond prices by repurchasing debt below par.