Brazilian bankruptcies create opportunities for debt investors

Samantha Pearson – The Financial Times, 06/30/2016

From apartments and cars to coffins, liposuction and toilet roll, there are few things that cannot be bought in instalments in Brazil — a legacy, in part, of the country’s past struggle with hyperinflation.

While Brazilian shoppers have made the most of this credit culture to pile up on debt over the past decade, the country’s companies have also borrowed heavily, encouraged by public banks and state development lender BNDES.

As Brazil sinks into its deepest and longest recession on record, the country’s credit bonanza has come to a spectacular end, prompting a wave of bankruptcies but also creating some of the best opportunities yet for distressed debt investors.

Read more…

 

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