The country risk measured by Brazil’s 5-year CDS has jumped 58%, to 356 points according to data compiled by Markit. A sign that the movement has to do with domestic factors, the 58% increase in Brazil’s country risk is superior than seen by other comparable emerging countries in the same period. The spread of contracts in Mexico increased by 39.1% in the period, while those in Colombia, 26.7%. Russia (19.8%), South Africa (12%) and Turkey (14.05%) also had minor variations in the period.
Source: Valor Investe