Ruble Rally Triggers ‘Mother of Squeezes’ as U.S. Funds Pile In
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The ruble’s flip from worst to best currency is causing a stampede in the bond market as U.S. money managers race back in.
At least half of the funds tracking JPMorgan Chase & Co.’s benchmark emerging-market local bond indexes own a smaller percentage of the debt than is contained in the gauges, according to Citigroup Inc. Now they’re playing catch-up after the ruble’s 15 percent rally this year, the most of any currency worldwide, sent the government’s OFZ bonds soaring 23 percent.