On Sunday, Nicolo' Bocchin , Azimut Group Global Head of #fixedincome, shared some valuable insights about the #market during his appearance on Asharq News الشرق .
During his interview he made a compelling case for including #emergingmarkets as a significant component in a diversified global #bonds portfolio. Specifically, he highlighted the potential of #Asian higher-yielding government bonds, such as those from #India and #Indonesia, which were the focus of the discussion.
In the current landscape, where interest rates appear to have peaked, Nicolo stressed the importance of seeking out higher #yields rather than settling for lower ones. The strategy he recommended is to extend the duration of your bond investments, considering long and very long #maturities. This approach is something to consider for the next couple of quarters, especially as he anticipates potential #volatility in the long end of the reference curve due to #centralbanks continuing to withdraw #liquidity from the market
Nicolo also pointed out that #China is another intriguing option to explore. This is particularly appealing given the favorable #macroeconomic environment with upcoming #fiscal and monetary stimulus measures
Incorporating foreign exchange (FX) #risk into the construction of the emerging markets component can be advantageous as it enhances #diversification. This becomes particularly valuable during periods when the US $is expected to depreciate due to lower #interestrates and a reduced differential compared to EM central banks
To request an English transcript please reach out to Maroun JALKH مارون جلخ
https://asharq.co/6f9qb
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