Big Short on Aussie Tells Loomis Time to Buy: Australia Credit
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No currency has ever fallen afoul of investors as fast as the Aussie over the past two months. For Loomis Sayles & Co.’s Dan Fuss, that’s a buy signal.
Fuss, whose Loomis Sayles Bond Fund beat 97 percent of peers in the past year with a 13 percent return, said he bought Australian dollar debt of a U.S. bank to benefit from higher yields and a positive exchange-rate outlook over three years. Traders swung to a record 63,277 net positions betting on declines on June 11, from net longs of 83,971 on April 2. That’s the biggest 10-week reversal on record for major currency contracts tracked by the Commodity Futures Trading Commission.