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. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Emerging Europe: How to beat the dollar blues

Leading specialist emerging market fund manager Ashmore Investment Management believes that local-currency and high-yield corporate debt could be the prime way for investors to take advantage of US dollar weakness and sub-prime mortgage concerns in the coming year.

Speaking in the wake of landing a $125 million local-currency debt mandate from US pension fund manager the San Bernardino County Employees’ Retirement Association, Jerome Booth, head of research at Ashmore in London, says: "We are seeing substantial institutional investor interest in local-currency emerging market debt at present. Emerging market debt is basically not a credit market any more. Emerging markets are net creditors, often with strong fiscal and current account surpluses, and low inflation. The sub-prime crisis could be the final nudge towards significant emerging market currency appreciation over the next 12 months as global central banks and others stop buying as many US and European assets.

Risk reducer

He adds: "For investors local-currency debt is a risk reducer. In particular, it can offer a natural hedge against US dollar weakness. All our central bank clients and the majority of our pension fund clients now invest in local-currency debt."

The Ashmore Local Currency Fund has returned more than 17% since inception in March 2006.

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.


Unlimited access to and

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


Unlimited access to and, 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


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