Top Fund Prefers Kiwi Bonds Over Aussie Debt on Rate Cut Bets
- New Zealand is a preferable “rates place,” according to Quin
- Weak economy, slowing inflation may make RBNZ signal a pivot
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New Zealand’s government debt is looking more appealing than its Australian counterpart as the nation’s central bank may start cutting rates soon, according to a top-performing fund manager.
A struggling economy will likely force the Reserve Bank of New Zealand to signal a pivot, making it a “a more preferable rates place,” Richard Quin, chief investment officer at Bentham Asset Management Pty., which manages A$7.5 billion ($5 billion) in assets, said in an interview.