Get the App:
Investment ImplicationsOur cautious stance on the cyclical outlook combined with a constructive view on the structural and the global drivers suggests:
In other words, while EM local rates will move higher again as the business cycle progresses, the cyclical highs will likely be lower than the previous highs, reinforcing the secular trend towards lower rates. In practical terms, this has specific investment implications. We like local rates that have the following characteristics:
Putting these three considerations together – strong credit quality, high real rates and steep curves – the local markets of Brazil, Mexico and South Africa all stand out.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Pacific Investment Management Company LLC, 840 Newport Center Drive, Newport Beach, CA 92660, 800-387-4626. ©2014, PIMCO.
Are you sure you would like to leave?
You are currently running an old version of IE, please upgrade for better performance.