Market roundup: Investors return to Brazil’s stock market despite fixed-income high yields

Illustration: André Chiavassa/TBR

Brazilians gradually return to the São Paulo stock exchange

The Brazilian financial market is undergoing an interesting trend: the number of investors putting their money in fixed-income securities is decreasing, while those betting on variable income are ticking back up.

The finding, from a survey by investment consolidation and monitoring platform Gorila, seems counterintuitive. When interest rates are high, fixed-income securities become more attractive than the stock market because they end up combining low risk and large yields.

The survey. Gorila analyzed portfolios of over 402,000 investors with up to BRL 100 million (USD 20 million) in equity.

Backdrop. Interest rates are at a six-year high. Monetary tightening began in March 2021, when they sat at an all-time low of 2 percent.

Types of investment. In May 2022, when the benchmark interest rate sat at 12.75 percent, just over one-third of investors had money in fixed income. Now that the rate is a point higher, that share...

Maria Luiza Dourado

Maria Luiza is a business and tech reporter. She has been published by Pequenas Empresas & Grandes Negócios, TC, and Olhar Digital, and has experience in real-time coverage of financial markets.