Goldman Buying Turkey and Argentina Debt

Goldman Sachs Asset Management is betting on the worst-performing emerging markets by buying up Turkish and Argentinian government debt, according to an article in Bloomberg. The article reports that the firm “has taken an overweight position in the nation’s dollar bonds” based on the rationale that the notes have been “decimated” by investors “fleeing a rout in emerging markets.” Goldman’s head of fixed income (Asia-Pacific) Philip Moffitt, said that in places like Turkey, “where the… Read More

Zweig: Avoid Higher Risk When Yields are Low

It seems that yield-starved investors are turning to high-risk investments in what Jason Zweig of The Wall Street Journal recently termed, “a reckless lunge.” Since June 30th, inflow to ETFs specializing in bonds from emerging-market countries has hit $1.2 billion. And, so far this month, investors have poured $2.8 billion into high-yield ETFs holding “junk” bonds (issued by below investment-grade companies). In his recent Intelligent Investor blog, Zweig references the findings of a new study… Read More