I“The Brazilian securities are less risky that in its former colonial power for the first time in a year and a half”, Bloomberg wrote this morning, with reference to five-year maturities.
Investors are “betting that the president, Michel Temer is going to manage to drag the South American country out of the worst recession in a century, while the outlook for Portugal has worsened given the fears that European growth is going to slow down”, it added.
The insurance that investors take out to guarantee payment of loans (Credit Default Swaps - CDS) made in Portugal have been rising since the beginning of the year and reached 293.6 basis points late last week, while the CDS for Brazil have been falling since February.