Brazil 2040 Dominates EM Secondary

Brazilian debt was most frequently traded in Q1, according to EMTA, with $175bn in turnover. This compares with $238bn in Q1 2008 (a 27% decline) and $164bn in Q4 2008 (a 7% increase). “Brazil’s 2040 bond remained the most frequently traded industry instrument, accounting for $12bn of survey turnover, although volume was down 58% and 8%, respectively, from the same quarter in 2008 and the previous quarter,” says EMTA. Brazilian volumes accounted for 19% of total survey trading, slightly below its share for the 5 previous quarters. Turkish assets were second most frequently traded, at $140bn, and China third with $92bn. Other frequently traded instruments were securities from Mexico ($45bn). EMTA’s survey includes trading volumes in debt instruments from 90+ EM countries. It includes data from 46 EM debt traders and investors, including investment and commercial banks, asset managers and hedge funds.