Confidence in Brazil's economy is returning, with bond and stock markets starting to climb, heralding the start of a turnaround for the Latin American country, experts have told CNBC.
Brazilian fixed income has been one of PineBridge Investments best performers this year, said Steve Cook, co-head of emerging market fixed income at the company. Morgan Stanley data showed Brazilian corporate bond prices have risen 4 percent over the last month and outperformed nearly all other emerging market corporate debt, according to a Dow Jones report, while the price of Brazil's government bonds have risen 13 percent.
"We think part of the performance this year has been Brazil's risk reduction," Cook told CNBC's Squawk Box.
"The Brazilian sell-off last year was overdone. Still, they are a challenge but we think Brazil is in a much better position now. We think it's more of a turnaround story: there are reforms coming through."