HALISTER1: Capital Group Favors U.S., EM Debt; Likes Argentina Dollar Bonds

Capital Group Favors U.S., EM Debt; Likes Argentina Dollar Bonds

(Bloomberg) -- Capital Group, which oversees $1.4 trillion, sees emerging-market debt becoming “more interesting,” says fixed-income investment specialist Eric Delomier.
  • USD is less of a “headwind” for EM because Fed unlikely to be in hurry to raise interest rates, Singapore-based Delomier says in a briefing
  • Favors Argentina’s hard-currency debt as nation implements a “much better macro economic framework”
  • Co. also likes India’s local-currency bonds due to reforms and focus on fighting inflation
  • U.S. bond mkt valuation more attractive than peers given negative yields elsewhere
  • Is cautious on corporate credit as firms increase leverage amid M&A and buyback deals due to low interest rates
  • READ: Private Banks Lure Negative-Yield Refugees to Asia After Brexit
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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