Hedge Fund Makes a Bold Bet on Brazil Rates
A newcomer in Brazil’s booming hedge fund industry says the country’s interest rate cuts will have to run much deeper than most investors expect, defying calls that the easing cycle is close to an end.
Persevera Asset Management, a firm created by former executives at HSBC Holdings Plc in Brazil, expects Latin America’s largest economy to once again grow less than forecast. That will force the central bank to cut the key rate from the current 4.5% to as low as 3% this year.
By Vinicius Andrade and Felipe Marques via Bloomberg