The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Latin America: Judging it on merits

The lemming effect whereby all emerging markets are sold off because of bad news in a few may be slowly breaking down. While Latin America has experienced fallout from the Asian crisis, a survey of US portfolio investors shows their stance towards it quickly recovering to a more positive one. This is largely because of the region's strong fundamentals and adept handling of volatitilty.

"This survey shows the verdict is still out as to whether the Asian crisis has hit rock bottom and that financial investors are understandably less confident about emerging markets than a year ago," says Christopher Smith, co-head of emering markets sales and trading with BankBoston, which commissioned the survey. "But it also a shows a high regard for Latin America's ability to ride out the storm as financial investors focus on long-term fundamentals."

Such positive feelings by US investors are unusual. "Clearly US portfolio investors do not view it as a safe haven, with the possible exception of Mexico, but many believe it is worth the risk and essentially moving in the right direction," says Smith.

A total of 66% of investors surveyed said they were more confident in Latin America as a region for investment than five years ago.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree