Pimco Sticks to Bullish Brazil Call After Buying Up Bonds
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Pacific Investment Management Co. is standing by its bet on Brazil.
Economic policy will improve regardless of who wins the nation’s presidential election this weekend, supporting bond prices, according to Pimco, whose $202 billion Total Return Fund tripled holdings of Brazilian government and corporate debt to about $8.8 billion in the second quarter. While the runoff vote’s result is “incredibly difficult to call,” Brazil offers one of the highest inflation-adjusted interest rates in the world, Michael Gomez, the head of emerging markets at Pimco, wrote in a post published today on the company’s website.