Economics
Venezuela's 20-Cent Bonds Are One Hedge Fund's Emerging-Market Pick
- North Asset Management sees only upside for beaten-up notes
- Bonds could double if opposition gains edge, Kisler says
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Peter Kisler says one of the best bets in emerging-market debt is a country racked by quadruple-digit inflation, a plunging currency, punishing sanctions and months of overdue payments.
In a world of stretched valuations -- even after this week’s selloff -- the hedge-fund manager at North Asset Management favors some of the world’s lowliest bonds, debt from Venezuela and its state oil company. His thinking is that with some notes trading as low as 20 cents on the dollar and many of them in default, they have nowhere to go but up.