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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (6578)	8/12/1998 7:03:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil Ctrl Bk Official Says Country Ready To Absorb Shocks Dow Jones Newswires BRASILIA -- Brazil is in better shape than it was nine months ago to absorb a shock from abroad, mainly because banks have trimmed their leverage levels in Brady bonds, a Central Bank director was quoted by Estado news agency as saying Wednesday. International Affairs Director Demosthenes Madureira Pinho Neto said high leverage and margin calls provoked the exit of $10 billion from Brazil in three days in late October, when the country appeared vulnerable to massive capital flight and an attack on the currency. But Pinho Neto said that if spreads had widened in October as much as they did on Tuesday, $15 billion would have fled. "We saw C-bonds with absurd spreads yesterday without anything happening," Estado quoted Pinho Neto as saying. "We're not seeing significant flight because there's no leverage," the monetary official added. Pinho Neto said that, in contrast to the U.S., Brazilian stock markets aren't expensive. Because of that, investors will tend to stay away from the market amid current global turmoil rather than sell outright, he said.