Goldman Fund Buys Turkey, Argentina Debt, Says Rout Overdone
By: Ruth Carson
Goldman Sachs Asset Management is buying Turkish and Argentinian government debt as it bets on the worst-performing emerging markets to offer some of the more profitable bond trades this year.The money manager has taken an overweight position in the two nations’ dollar bonds, according to Philip Moffitt, Asia-Pacific head of fixed income at Goldman Sachs Asset Management. The rationale: these notes have been “decimated” by investors fleeing a rout in emerging markets even though the two nations’ finances remain robust.
“There’s been some dysfunctional, local political events like those in Argentina or Turkey and that’s prompting some investors who own EM risk to sell,” Moffitt said in an interview in Sydney. “But even places like Turkey, where the politics stink, their local financing, local sovereign balance sheets are actually strong -- they can certainly afford to fund themselves and pay their interests.”
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