These increases
appear to reflect concerns about large federal deficits but also other causes, including greater
optimism about the
economic outlook, a reversal of flight - to - quality flows, and technical factors related to the hedging of mortgage holdings.
But the wave of
optimism generated by the choice of Brazil as a venue for these two events (a wave that began to roll out years before the events actually happened), coupled with what at the time
appeared to be sound and promising
economic / social indicators, boosted foreign direct investment and M&A transactions for at least 5 years beginning in 2010.