How to Avoid Defaults in USD-Denominated Bonds from Brazilian Companies

Key Strategies to Mitigate Default Risk in USD Bonds Issued by Brazilian Corporates

Investing in emerging market corporate bonds, especially from countries like Brazil, can offer attractive yields. However, higher yields often come with higher risks—one of the most significant being the risk of default. While Brazilian companies have issued a broad range of USD-denominated bonds over the years, not all issuers are created equal. Some have provided solid, reliable returns, while others have caused substantial losses to investors.

Here are some practical strategies for avoiding defaults in Brazilian corporate bonds denominated in U.S. dollars.