Up in Smoke? Brazil’s Wildfires May Affect Bond SpreadsJul 10, 2020 Learn More
Clearing Brazilian forests to make way for agriculture may generate a backlash to its soy and beef producers if purchasers impose deforestation-free requirements. What are the potential implications for investors in Brazilian corporate and sovereign debt?
The recent trend in high-yield market spreads appears to relate more to concern about rising rates than the potential for credit losses. However, investors should be aware that the impressive recent performance of short-dated high yield bonds and floating-rate leveraged loans may be reversed if credit conditions begin to deteriorate.