Showing posts with label Emerging markets debt. Show all posts
Showing posts with label Emerging markets debt. Show all posts

Sunday, December 6, 2009

Ever wondered why the real was overvalued?

From Michael Gomez:
At current differences in like maturity nominal yields between U.S. dollar- and Brazilian real–denominated debt, the U.S. dollar would have to appreciate by 70% versus the real over the life of the investment for U.S. dollar debt to outperform.
Local-currency Brazilian bonds yield up to 13%.