Brazil Hedge-Fund Heavyweights Turn Negative on Local Rates
- Verde, Kapitalo and Ibiuna betting on higher swap rates
- Policymakers set to start raising borrowing costs next week
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Brazilian hedge fund managers have doubled down on their pessimism with local assets, and are now targeting wagers in the country’s rates market.
Verde Asset Management, Kapitalo Investimentos and Ibiuna Investimentos, which oversee a combined $12 billion in assets, said they’ve opened so-called payers — positions that gain from higher interest-rate futures — amid lingering fiscal worries, according to recent investor notes.