‘We Got Brazil Wrong’ – Fund Managers React to Brazil Slump

Christopher Whittall – The Wall Street Journal, 7/30/2015.

It’s not much fun being an emerging-market investor at the moment.Collapsing commodity prices and an imminent U.S. interest rate rise have wreaked havoc on many emerging-market currencies and bonds.

Nowhere is this felt more keenly than Brazil, where the central bank raised interest rates Wednesday to tame high levels of inflation.

Standard and Poor’s Ratings Services downgraded Brazil’s outlook to negative from stable Tuesday to reflect the country’s ongoing difficulty in getting its finances in order. S&P currently rates the country just one notch above investment grade.

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