BPI Wealth Sees Philippine Bond Gains on Rate Cut Bets
- Philippine peso bonds have outperformed local notes in India
- Asset manager says peso may rise to 55 to 56 per dollar
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BPI Wealth, which helps manage around $26 billion in assets in the Philippines, is buying longer-term government bonds on expectation the central bank will trim interest rates as inflation eases in the months ahead.
“We have been building positions, taking advantage of the uptick in rates and adding duration,” Maria Theresa Marcial, president of the asset management arm of the Bank of the Philippine Islands, said in an interview. “We are betting that over the next 12 months, rates will peak and as rates go down, bond prices will improve.”