Brazil’s government sees the recent spate of blowups in the nation’s corporate credit markets as isolated cases that do not pose a systemic risk, people familiar with the matter said.
The economic team is monitoring a series of setbacks that sent Brazilian corporate bonds spiraling over the past few weeks, the people said, asking not to be named because the information is not public. While Brazil’s high interest rates may pose challenges for companies that need to renegotiate their debt, the current distress cases are more linked to specific problems at the companies, they added.
Investors have been slashing exposure ...