Sat, Aug 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds, family offices find higher yield in local Brazilian bonds

Tuesday, January 07, 2014

Komfie Manalo, Opalesque Asia:

The Brazilian local bond market offers more profits than offshore bond markets, said George Wachsmann, a partner with GPS Investments, the largest independent wealth manager in Latin America, at the recent Opalesque Brazil Roundtable.

"Rates are very compressed in Brazil, but last week we bought 10-year paper for our clients at inflation plus 7.5%," Wachsmann said and added, "The month before we bought inflation plus 6.5% with a tax exemption. That investment gives you almost twice the return you will get with the CDI (the Brazilian benchmark interest rate), so it's a huge opportunity."

He added that his firm continues to have confidence in the local hedge funds space because they can tactically hedge in challenging times for the Brazilian economy. In addition a number of local fund managers invest offshore and hedge against currency fluctuations.

Nathan Sor, one of the founders of Galloway Capital, a global emerging market fixed income asset management house, pointed out why the local bond markets are better because Brazilian large local issuers pay lower yields than their issues offshore primarily because big local pension funds, foundations and other institutional investors do not invest abroad yet.

"Local demands will accept to buy bonds that just pay over local CDI, equivalent to L......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner