Peru’s 80-Fold Market Boom Draws DoubleLine to Top Bonds
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DoubleLine Capital LP’s Luz Padilla has a secret weapon that’s helping her emerging-market bond fund beat 97 percent of its rivals: Peru.
The Andean nation’s corporate bond market is booming, having swelled to $16 billion of dollar debt from just $200 million in 2010 while handing investors the highest returns in emerging markets this year. The growth in company borrowing mirrors that of the nation’s gross domestic product, which expanded at the fastest pace among Latin America’s biggest nation’s over the past four years as President Ollanta Humala followed his predecessors’ lead by delivering budget surpluses that bolstered investor confidence and buoyed consumer spending.