HSBC backing Brazilian financials and housebuilders ahead of drop in rates

HSBC and Cavendish highlight opportunities in Brazil and Far East at Investment Week's Global Emerging Markets focus in London.

Financials and housebuilders are set to be the key sectors in Brazil when interest rates finally fall, Omar Negyal at HSBC Global Asset Management, has said. The senior fund manager, who runs the group’s Brazil Equity fund, is backing the country’s central bank to slash rates from their current level of 12.25%. “Our view is those rates will come down in the long term, creating a huge amount of affordability for auto loans and mortgages which will be very positive for the financial sector,” he said. He expects interest rates – which have been climbing recently – to fall as part of a s...