Stocks around the emerging world have had a tough week, but the Brazilian financial sector has been lagging the rest of the Bovespa, not to mention banks elsewhere. There’s a good reason for this, and it hasn’t been reported widely.
Brazilian banks are more profitable than Americans for the eighth consecutive year, according to a recent survey from consulting Economatica.
The rating agency Moody’s has put the ratings of the nine biggest banks doing business in Brazil on negative credit outlook.
Vermilion’s analysts believe Brazil continues to emerge as the short-term global leader in Latin America and that there are plenty of individual opportunities there.