Local currency debt valuations:
FX: Very Attractive
- At 2.0%, our expected spot return indicator lands in the most attractive fourth quartile
- Mean subsequent GBI-EMGD weighted spot return has been +8.7% for the fourth quartile and +7.1% for the third quartile
Local Rates: Very Attractive
- EM local rates maintained an attractive valuation gap versus U.S. interest rates
At 0.4%, this is in our most attractive fourth quartile, where the mean subsequent EM/U.S. return differential has been +2.6%
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Disclaimer: The views expressed are the views of GMO’s Emerging Country Debt team through the period ending July 2025 and are subject to change at any time based on market and other conditions. This is not an offer or solicitation for the purchase or sale of any security and should not be construed as such. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.
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