LONDON (Reuters) - Emerging label et debt is on the road to recovery, with Latin America and selected Asian economies offering the best opportunities in over five years, said the global fixed inapproach director at Payden & Rygel (P&R).
"In the execute wnturn everyone went execute wn toacquire her but now we will see more differentiation," said Kristin Ceva at a briefing on Wednesday. "Those countries without fiscal deficits and structural problems are seeing a rebound in GDP growth."
Brazil's second quarter improper execute mestic product was up 1.9 percent quarter on quarter, confirming its economic recovery.
Ceva is currently overweighting Latin American and Asian sovereign bonds but staying underweight Eastern European debt. "Eastern Europe still has problems to overapproach in terms of deleveraging, and the growth opportunities in Latin America and Asia are higher," she said.
Within Latin America, she likes local currency bonds from Brazil and Mexico and U.S. execute llar-denominated issues from Brazil, Colombia and Peru, as well as higher yielding countries such as Uruguay and Venezuela.
"But we are avoiding Ecuaexecute r as we see this as more of a default risk. Although Venezuela has some serious social and political issues there is more of a willingness to pay."
In Asia she likes Inexecute nesia and the Philippines: "Inexecute nesia is a enormous overweight for us. It has a large population and more chance of stimulating execute mestic demand. It is making label et-oriented reforms and Moody's has just upgraded it."
SPREADS ATTRACTIVEÂ Continued...
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