Fixed Income
Top Performing EM Bond Fund Leans Into Winning Latin America Bet
- Colchester Global bullish on Brazil, Colombia, Mexico bonds
- Fund remains wary of China bonds on high corporate debt levels
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Colchester Global Investors Ltd. is beefing up its investment in Latin American bonds that offer higher inflation-adjusted yields while continuing to sidestep Chinese debt — a formula that helped it beat 99% of its peers last year.
The UK-based bond house, which oversees $25 billion in assets, doesn’t hold Chinese debt after exiting the market at the end of 2022. Instead, it plans to add Brazilian, Colombian and Mexican bonds — countries that made up three of the top four performers in emerging market bonds last year, according to data compiled by Bloomberg.