Brazil: Do LatAm equity issuers need foreign bank leads?

With the Bovespa down 10%, Brazil’s equity market is among the worst performers this year. In part this is for technical reasons. Bankers say that with global emerging equity funds so overweight Brazil, investors have to sell existing positions in Brazilian companies to buy new shares. Throw in the large outflows of emerging markets equities earlier this year and the impact that the sell-off of commodities has had on some of the Bovespa’s leading companies and explanation of the index’s poor performance becomes clearer.