RIO DE JANEIRO, BRAZIL - In line with what large international institutions have been doing, Credit Suisse reduced its exposure to Brazilian equities from overweight (exposure above the market average) to benchmark (or in line, equivalent to the neutral recommendation), while Mexico was raised to overweight.
Among the reasons for the reduced exposure to Brazil are political concerns, the fiscal scenario, and the impact of Covid-19 on economic activity.
With respect to the first point, strategists point out that the main driver for the reduction in the price outlook on earnings was the perception of worsening corporate governance of companies . . .