HALISTER1: Buy Peru Local Debt on Expected Policy Easing: Deutsche Bank

Buy Peru Local Debt on Expected Policy Easing: Deutsche Bank

(Bloomberg) -- The Soberanos 26s offer attractive yield pick-up and benefit from Peru’s steep yield curve and supportive stance on monetary policy, Deutsche Bank strategist Guilherme Marone writes in research note.
  • Recommends buying bonds without currency hedge
  • Soberanos offer highest 10-year term premium in Latin America
  • Soberanos 26s benefit from lighter positioning among foreigners compared to shorter and longer-term debt
  • Risks include the bonds’ exposure to currency, China, copper and commodity prices; NDF rates are above 5%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Guilherme Marone (Deutsche Bank AG)

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