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Pimco Says Brazil, South Africa Best for Emerging Bonds

Brazil, South Africa and Mexico are the best emerging markets to buy local-currency bonds because they offer higher yields than the debt of developed nations, according to Pacific Investment Management Co., manager of the world’s biggest bond fund.

“Some of our largest investments in emerging local-currency debt are in these three countries,” Ramin Toloui, Pimco’s global co-head of emerging markets portfolio management, said in an interview in Singapore today. “In an environment where global growth rate is very slow, and where core industrialized yields are very low, there tends to be a strong force of gravity that pulls those rates down over time. That’s why these are our favorites.”