4 ms·
Depends on how much risk you are willing to accept. For example, the baseline interest rate of Brazilian Government Bonds are paying 14.25%/year.
by scardine 11y ago
Depends on how much risk you are willing to accept.
For example, the baseline interest rate of Brazilian Government Bonds are paying 14.25%/year.
- benmanns 11y agoOften this means the market is expecting ~13-14% inflation against the USD.
- scardine 11y agoIt is more like 7% inflation in the local currency plus a 7% premium for the risk of default. The exchange rate is much more volatile than the inflation rate alone, but it is relatively easy to hedge.