Dec 8, 2011

Brazil: Debt Securities Held by Foreign Investors

In October, purchases of fixed-income securities by foreign investors had reached an outflow of 30 million USD, and in the previous month, the flows were negative in USD 1.3 billion.

Analysis: The chart below shows the trend of foreign investments in debt securities in Brazil. One can observe a clear trend of decline in 2011. This trend can be explained by two reasons. First, the fall in interest rates, which makes the profitability of these assets less attractive. And second, because of international crisis, the funds seek safe places, such as U.S. securities.

Source: Central Bank of Brazil

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