JPMorgan Juices Bets on the Red-Hot Debt Market in Sri Lanka
- Local currency bonds have lagged the rally in dollar peers
- Investors see road to recovery taking place over time
Sri Lankan dollar debt has been on a tear amid optimism that the nation can successfully rework $12 billion in defaulted global bonds.
Photographer: Jonathan Wijayaratne/BloombergThis article is for subscribers only.
Global money managers are turning to Sri Lanka’s local-currency government bonds as a catch-up trade in the country’s red hot debt market on optimism for a restructuring deal.
JPMorgan Asset Management has actively rotated into rupee securities from dollar-denominated holdings over the course of the year in one of its Asian total return funds, said Jason Pang, a senior portfolio manager. T. Rowe Price Group Inc. expects the local bond trade to run further with modest currency gains and domestic rates bolstering demand, according to portfolio manager Leonard Kwan.