Good gains in Latin America, Asia
Good gains in Latin America, Asia
Latin American bonds and Asian equities will give the highest returns in 2006, while US treasury yields are likely to decline, according to Deutsche Bank.
‘’Treasury bills will still be a good investment choice, but investment in [other] assets will enhance returns on one’s portfolio,'’ said Marshall Gittler, chief Asian strategist at Deutsche Bank.
Interest-rate hikes by the Federal Reserve have reduced liquidity in the US financial market, resulting in an overpriced corporate bond market.
Meanwhile, the credit standings of Argentina, Brazil and Venezuela have been improving, particularly with regards to the balance of payment and fiscal debt.
‘’Bond spreads in these countries declined to 300 basis points above treasury bills in 2005, from 700 in 2002. Half of that was due to improved credit ratings,'’ said Mr Gittler.
More: bangkokpost.com
