Loomis Sayles Bets Holdouts Will Be Rewarded in Iceland FX Deal
- U.S. fund declines government’s latest offshore krona offer
- Says it’s in it for the long haul as capital controls end
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Loomis Sayles & Co. won’t accept Iceland’s terms to buy back its krona holdings as the U.S. fund instead opts to wait for the currency to pick up and boost the value of its investment.
Loomis, which is estimated to have as much as $360 million stranded in Iceland as a consequence of capital controls imposed in 2008, rejected a deal it was offered when the country exited the restrictions earlier this month. That’s because the investor expects to get a better return when capital flows are normalized, Peter Sheehan, a senior analyst with the fund, said in a telephone interview.