RIO DE JANEIRO, BRAZIL -The rise in Brazil’s risk indicator is much higher than that seen in other emerging economies.
Amid worsening financial indicators for Brazil since President Jair Bolsonaro’s intervention in Petrobras, the country risk as measured by the spread of the country’s 5-year credit default swap (CDS) contracts has soared 14.02% since last Friday to 186 points, according to data compiled by Markit.
This is also the highest level since November 6th, when the spread reached 189 points.
Brazil’s indicator hike is also much higher than seen in other emerging economies over the same period. Mexico’s CDS spread increased by 6.79%, Russia’s by 2.14%, South Africa’s by 3.71%, and Turkey’s by 2.12%.