HALISTER1: PineBridge Plays It Safe in ‘Stretched’ Emerging-Market Debt

PineBridge Plays It Safe in ‘Stretched’ Emerging-Market Debt

(Bloomberg) -- PineBridge Investments is taking a cautious approach to emerging-market debt, saying economic improvements have already been priced in.
  • “The search for yield has resulted in valuations being very stretched across all risky markets,” according to Steven Oh, the head of credit and fixed income at the firm, which manages $80.3 billion
  • PineBridge is underweight EM corporate debt in the short term, but expects the asset class’ outlook to improve in the long run
  • It favors Indonesian and Argentine sovereign notes and Asian corporate bonds; the company is underweight in Brazil where it sees greater political risks than what is priced in
  • “While we like the long term in emerging markets, we want to be a bit more defensive in our approach,” Oh said
  • NOTE: Buy ‘Defensive’ Loans for Relative Value, Says PineBridge’s Oh
To contact the reporters on this story: Aline Oyamada in Sao Paulo at aoyamada3@bloomberg.net; Janine Wolf in New York at jwolf71@bloomberg.net To contact the editors responsible for this story: Rita Nazareth at rnazareth@bloomberg.net; James Crombie at jcrombie8@bloomberg.net Peter Millard

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Steven Oh (PineBridge Investments LLC)

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