Brazil Teases Out Bradys

Brazil Teases Out Bradys

Brazil

Brazil executed a $1.33 billion debt exchange in July, its first in two years, achieving some of its highest-ever participation rates from holders of its Brady bonds and releasing $650 million in collateral. While the Brazilians hailed the deal as a success, some investors were unhappy with the way it was structured, and complained they had been led to expect a more ambitious transaction, perhaps involving the withdrawal of a big chunk of Brazil's benchmark C-bond. But the Brazilians refused to pay the premiums bondholders were expecting. Beny Parnes, the central bank's international director, says bluntly, "We represent the interests of the Republ

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