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IN BRIEF.(FUTURES & BONDS)

Investor's Business Daily

| December 02, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Compiled from Reuters

Spreads on Brazil debt tighten

Risk spreads on Brazil's sovereign debt tightened on Thursday to their narrowest ever as investors anticipated a year-end rally in Brazil bonds, encouraged by a possible increase in the pace of cuts in official interest rates.

Yield spreads between Brazilian sovereign bonds and comparable U.S. Treasury notes narrowed 11 basis points to an all-time low of 329 basis points, according to JPMorgan's Emerging Markets Bond Index Plus.

Data on Wednesday showed Brazil's economy shrank in the third quarter by more than analysts forecast, raising expectations for larger interest rate cuts.

Fitch lowers rating on Calpine

Fitch Ratings lowered its ratings on Calpine Corp. to CC, citing a decision by a Delaware Court that the utility company violated terms of a debt agreement. The court ruled that Calpine must repay $313 million of proceeds from an asset sale, which will place pressure on the company's already stressed cash position, ...

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