BlackRock overweight local currency EM debt, sees buffer in spreads

LONDON (Reuters) – BlackRock is overweight local currency emerging market debt, seeing a potential for positive returns and a buffer in spreads as U.S. interest rates rise, Sergio Trigo Paz, the firm’s head of emerging market fixed income said on Wednesday.

The company logo and trading information for BlackRock is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 30, 2017. REUTERS/Brendan McDermid

“There are not that many opportunities where you get a positive total return and emerging markets give you that,” Trigo Paz told a media briefing in London, adding that synchronized growth was creating a virtuous cycle for emerging markets. “And as rates go higher we still have some spreads buffer.”

He added that Russia, South Africa and Turkey were all attractive to some degree, thanks to growth, some stability in the policy-making and the potential to cut rates.

Although Turkey has come under selling pressure this week on worries about the economy and geopolitical tensions, Trigo Paz said that with a 12.5 percent carry, investors were getting paid to take on the risk.

“(It) makes Turkey attractive from a relative value perspective,” he said.

Reporting by Claire Milhench; editing by Dhara Ranasinghe

Filed in: Top News Tags: 

You might like:

Morgan Stanley holds top spot as activist defense firm: data Morgan Stanley holds top spot as activist defense firm: data
Oil major Total CEO's compensation drops 17 percent in 2018: company document Oil major Total CEO's compensation drops 17 percent in 2018: company document
Overdone? Short EU equities 'most crowded' trade for first time Overdone? Short EU equities 'most crowded' trade for first time
Role of a Lifetime: Life Lessons with Peter Krause Role of a Lifetime: Life Lessons with Peter Krause
Mutual funds start to put their mouth where their money is Mutual funds start to put their mouth where their money is
Equity funds see biggest weekly inflows in a year: BAML Equity funds see biggest weekly inflows in a year: BAML
TPG Rise founder leaves firm in wake of U.S. college admissions scandal TPG Rise founder leaves firm in wake of U.S. college admissions scandal
Advantage Lithium replaces CEO in wake of college admissions scandal Advantage Lithium replaces CEO in wake of college admissions scandal

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.