Brazilian treasuries

Brazilian economy is crap but its yields are high

Daniel Resende
Asset Manager at Verios Investimentos

Brazilian economy is crap now

I like this course a lot, with this I manage to create the first Brazilian Robo Advisor.

We invest in three different classes of fixed income:

  • Postfixed (it pays around 14.25%)
  • Prefixed (ten year bond: 16%)
  • Inflation (7% over inflation, wich is around 10%)

And two different equity markets

  • S&P 500 (broadly and know index)
  • Brazilian top 50 company (-85% in USD since 2007)

But we have been there before

Brazilian economy thrives when the currency is undervaluated. Their workforce got very cheap, their once 6th biggest economy infrastructure got idle and availabe for a very low price. Around 100% of population got in school since the 90s.

BRL is on the lowest right now.

crap currency

Compare treasuries series

Okay, this is a crappy app, no proud of it. But it will be a nice way to look to durations and convexities of brazilian fixed income

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It was fun, see you in the Capstone Project

This is So Paulo, brazilian biggest city.

Sao Paulo