BNP Paribas’s EM Debt Head Bets Big on Colombia, Brazil Bonds

BNP Paribas Asset Management’s Alaa Bushehri is bullish on Brazilian and Colombian bonds, expecting a softer dollar and domestic policy to support the notes despite global trade uncertainties.

Bushehri, head of emerging market fixed-income in London, favors 30-year dollar bonds in those Latin American countries on a view that yields are high enough to compensate for the risks of holding the securities. In the local currency sphere, she prefers shorter tenors of two to 10 years on expectations that central banks have room to cut interest rates should economic headwinds intensify.