Patrimonial sees Brazil’s debt burden rising as fiscal challenges persist

• Patrimonial Gestao de Recursos cut Brazilian equity exposure in its October 2026 market review, retaining substantial holdings in IPCA-linked securities for inflation protection.
• The outlook points to gradually rising debt-to-GDP, persistently high interest rates and a challenging environment for Brazil’s private sector.
• Brazil’s Copom held interest rates at 13.75%, highlighting sharper economic moderation alongside rising inflation expectations.
• Some multimarket investments shifted into a corporate-event arbitrage strategy, while credit positioning remained conservative amid weaker corporate and household balance sheets.
• Small international equity positions and gold holdings remained in place, with offshore exposure recommended according to individual circumstances.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Patrimonial Gestao de Recursos Ltda published the original content used to generate this news brief on November 05, 2026, and is solely responsible for the information contained therein.