Brazil tax-exempt fund redemptions hit record, spreads widen to 2-year high

Brazilian incentivized credit funds saw record net redemptions in September 2026, the largest since the series began in 2021, as investor losses mount. This pushed spreads on private securities relative to NTN-Bs to their highest level in two years, signaling a sharp correction in a previously euphoric market. The trend reflects deteriorating investor sentiment and potential liquidity stress in the incentivized credit segment.