Merrill Lynch upgrades Brazil debt to "overweight"
São Paulo, 19 - Merrill Lynch has upgraded Brazil to overweight in its emerging-market debt portfolio, citing "a near term correction that offers buy opportunities."
In a report Monday, the investment bank said its "baseline strategy" remained unchanged.
"For now, we still see the market´s behavior as primarily a liquidity story and less a fundamentals-driven story," the Merrill Lynch report said.
"In the very near term, the market may still see a bit more downside before it stabilizes, but we are confident that given the ample liquidity conditions, buyers will soon re-appear," said Merrill Lynch.
"To better capture the next leg of this run up, we up Brazil, Uruguay and Venezuela to overweight, and we downgrade our long-standing overweights of Russia and Colombia to marketweight."