Brazilian Credit Spreads Threaten Earnings: CS

Brazilian Credit Spreads Threaten Earnings: CS

Bonds Structured Finance Brazil Economy & Policy

The continuing reduction of credit spreads in Brazil will likely hurt the earnings of Brazilian banks, Credit Suisse says. “Lower credit spreads should add additional pressure to banks’ profitability, further exacerbated in a scenario of lower Selic [Brazil's benchmark interest rate],” the bank says. While public banks are leading the way, the magnitude of the decline suggests that private-sector banks are also reducing spreads. “We still see significant downside risk to our earnings forecasts,

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial