When it comes to countries like Japan, so called Toshin Funds will undoubtedly be looking for a home in Brazil, a favorite of the Japanese carry-trade.
Japanese investors holding Brazil debt through Toshin funds are long term investors who do not use leverage and are in no rush to liquidate in times of economic crisis.
According to Nomura, 13% of Toshin investors responding to a bank survey said that they prefer to hold Brazil and other foreign bonds for more than five years, with 23.3% holding on average of three to five years.