For Japan¡¯s Asset Management One Co., the sell-off in emerging-market bonds is overdone and the time is ripe to hunt for bargains.
The $460 billion money manager is bullish on debt in developing nations, particularly in Mexico. That¡¯s even as Moody¡¯s Investors Service, S&P Global Ratings and Fitch Ratings have all recently downgraded Mexico¡¯s sovereign rating. It is also overweight on Polish bonds.
¡°We are very positive about emerging markets as a whole and there is more chance to raise profits by investing in EM bonds this fiscal year in the situation where yields in developed economies are falling,¡± said Yusuke Ito, a Tokyo-based fund manager at Asset Management One, said in an interview.
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