02/02/2017. Aricapital Asset Management: Local bonds in EM currencies
The Russian ruble and Brazilian real have shown world beating rallies in 2016, both appreciated more than 20% vs USD. After Russian government bonds posted more than 40% in US dollar terms in 2016, new year may bring a return to bleak reality. Given that Russian authorities have started to cope with an overvalued ruble, Mexico and Turkey are in the opposite situation. They are raising interest rates to stop devaluation of national currencies. These two countries can overwhelm Russia as the best local fixed market for foreign investors in 2017.