Currencies
Dollar Path Splits Goldman, Fidelity Over Emerging-Market Bonds
- US elections are likely to hurt local-currency bonds: Goldman
- Fidelity says ‘stars are aligning’ for EM rates, FX to rally
This article is for subscribers only.
Goldman Sachs Group Inc. says emerging-market investors should favor dollar-denominated bonds over local-currency ones. Fidelity International says the opposite.
Goldman argues that dollar debt will outperform as potential US election volatility bolsters the greenback and leads to policy changes that could hurt developing-nation assets. Fidelity says local-currency assets will perform better as the Federal Reserve starts to cut interest rates.