Where Defaults Loom, This Trading Strategy Is Delivering Big Returns
- Ukrainian corporate bonds are among top winners in EM markets
- MHP and Metinvest notes have doubled since the war began
Metinvest BV has kept factories humming as the war in Ukraine dragged on.
Photographer: Julia Kochetova/BloombergThis article is for subscribers only.
In countries where the threat of default never goes away, there’s a trading strategy that’s delivering big returns.
It works like this: find companies that are resilient, even if there’s a war a few hours away, sky-rocketing inflation or worries that the government can’t pay its debt. And while diving into markets like Argentina and Ukraine isn’t for the faint of heart, specialist investors say there’s money to be made hunting down the right bargains.