Emerging Markets in Global Macro Investing

By Gene Frieda

This article was first published as a chapter in Global Macro: Theory and Practice, by Risk Books.

Brazil has some of the savviest global macro investors in the world. While financial engineers from Ivy League schools were busy turning trash into triple A-rated securities in the early part of the 21st century, Brazil’s traders were applying their own sophisticated engineering to global markets.

In the 1980s and 1990s, Brazilian fixed income traders were on the cutting edge of financial innova