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Offbeat and off-benchmark: the frontiers of EM debt
by Danielle Levy on Feb 26, 2013 at 13:36
The team has also sought to take advantage of yield compression in Nigerian debt. Having initially invested in short maturity hard currency paper, they recently opted to buy into local currency five-year debt, yielding just over 10%. The manager points to the country’s growth potential and improving fiscal situation.
Sally Greig, manager of the Baillie Gifford Emerging Markets Bond fund , has also bought into Nigerian debt. ‘We were watching Nigeria for a while and were pretty bullish on the progress it was making. There is still more that it could be doing, but the signs are really positive. You are getting a very attractive yield on that market – event though it has come down quite a bit - and we think there is more to go for on the bonds and the currency is pretty stable.’
Greig also holds Romanian debt on a 5.5% yield, on a sub five-year maturity, and argues that Russia – albeit not a new market – offers valuation opportunities.
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Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Dylan Lobo on Jun 19, 2013 at 09:33