While billions of dollars have been cascading into Latin American fixed income portfolios, equity investors have been a little more hesitant in increasing exposure to the region.
Tim Love, investment director at asset manager GAM, believes that many investors are not yet ready to move down the risk spectrum from fixed income to equity.
“The concept of absorbing EM equity volatility has… been too much of a stretch for some,” he says, “with some preferring the absolute or even leveraged exposure to EM [emerging market] credit and/or EM sovereign debt due to lower perceptions of risk.
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