HALISTER1: Lombard Odier Sees Room for Emerging Currencies to Gain in 2017

Lombard Odier Sees Room for Emerging Currencies to Gain in 2017

(Bloomberg) -- The U.S. dollar may not appreciate this year, giving scope for emerging-market currencies and assets to gain, Jean-Louis Nakamura, Lombard Odier’s chief investment officer for Asia Pacific, says in briefing in Singapore.
  • Co. is skeptical over the possibility of a “true fiscal bazooka” from the Trump administration: HK-based Nakamura
  • Cyclical conditions of most EM economies are much better now
  • Co. prefers EM foreign-currency bonds as they have lower volatility compared to EM local debt; likes sovereign bonds of Brazil and Indonesia
  • EM Asia credit is attractive as they offer a much higher spread for the “rich quality” of their balance sheets; supply of new bonds is also shrinking
  • Co. is positive on banking shares as they are likely to benefit from higher yields and deregulation moves
  • READ: Goldman Likes Emerging Debt, So Long as There’s No Link to Trump
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Source: BFW (Bloomberg First Word)

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Jean-Louis Nakamura (Lombard Odier Darier Hentsch)

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