Brazil Country Risk Jumps After Lula Win
11 Articles
11 Articles
The JP Morgan indicator went back 17 units, up to 748 basis points, while sovereign bonds in dollars scored ups; the gap between the MEP and the official dollar was closed
The five-year-old Brazilian CDS - a protective instrument against caps - fired this Monday after Lula's surprising victory in the presidential elections. The CDS rose from 120.21 points on Friday to 143.87 points on today's front, at its highest level since March 2026. The "insurance" accompanies other domestic market assets that suffered with a relevant recalcification after the outcome of the polls, as investors show skeptical about the conduc…
Indicator advanced after Lula's victory; dollar, stock exchange and future interest also recorded strong reaction. Read on Power360.
In addition to firing against the real dollar and taking down the Brazilian Stock Exchange, the re-election of President Luiz Inácio Lula da Silva (PT) also catapulted the country risk, which reached its highest level since June of last year. Also known as sovereign risk, the country risk is an economic indicator that measures the probability of a country giving a cap on its external debt. It works as a "termometer" of confidence that foreign in…
The 5-year Credit Default Swap (CDS) from Brazil, a derivative that protects against sovereign debt caps, country risk thermometer, rose 26% on Monday (26) and operates at 151.7 points. Compared to Friday (23), the indicator was at 120.2 points. This is the highest level of the index since June 2025. [...]
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