Hermes Says Be Selective on Emerging Corporates After Rally
Source: BFW (Bloomberg First Word)
Tickers
GGBR4 BZ (Gerdau SA)
CHMF RM (Severstal PJSC)
85240Z LN (Hermes Fund Managers Ltd)
People
Fraser Lundie (Hermes Fund Managers Ltd)
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UUID: 7947283
(Bloomberg) -- “Return to fair value” in emerging-market corporate bonds “compels us to remain highly selective,” analysts at Hermes including Fraser Lundie say in e-mailed note.
Alert: HALISTER1- “Low-hanging fruit” of rally “now behind us”
- NOTE: Emerging-market corporate dollar bonds have returned 14% YTD, heading for best year since 2012, according to a Bloomberg index
- Important to “fully exploit” flexible, global mandates to “eke out returns where risk is deemed appropriate”
- Recommends buying steel producers Russia’s Severstal, Brazil’s Gerdau on strong fundamentals, under-appreciated recovery stories
- NOTE: Be Careful What You Buy in Emerging Markets, BlackRock Warns
Source: BFW (Bloomberg First Word)
Tickers
GGBR4 BZ (Gerdau SA)
CHMF RM (Severstal PJSC)
85240Z LN (Hermes Fund Managers Ltd)
People
Fraser Lundie (Hermes Fund Managers Ltd)
To de-activate this alert, click here
UUID: 7947283