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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, ...