Brazil best place to bet against hawkish policy

Good mood: A woman celebrates the bicentennial of Brazil’s independence on the streets of Sao Paulo. Some analysts are suggesting that the country is the only South American nation where holding receivers may yet pay off. — AP

SAO PAULO: At least three leading banks say that Brazil might be the only place in Latin America where traders are right to defy a hawkish turn from policymakers.

While swap markets across the region are pricing in rate cuts next year, analysts from Goldman Sachs International, JPMorgan Chase and Co and Citigroup Inc said Brazil is the sole country where holding receivers, positions that profit from falling rates, may actually pay off.