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

To: jeremy smith who wrote (7121)	8/26/1998 10:48:00 AM
From: djane	Respond to of 22640

thestreet.com article. Fidelity developing country bond trader views thestreet.com Excerpt relevant to Brazil: Carlson insists that not every developing country is like Russia. "It's very easy at the moment of darkness to say all the glasses are half-empty," he says. He still likes Brazil, Argentina and Mexico, as he thinks they've stuck on the reform road. If current prices do not reflect the improving economic fundamentals of many countries, then a strong recovery rally could occur when the negative sentiment dissipates. On Monday, the combined yield on the EMBI+, which rises as prices decline, was a staggering 12.93 percentage points over U.S. Treasuries. This spread -- which shows how much more interest investors are demanding for increased risk -- is much wider than the 1998 low of 4.45% on March 23. Carlson thinks that the yield spread on the EMBI+ should be around 7.5 percentage points over Treasuries, based on current economic fundamentals.