IMPORTANT TO LOOK AT EMERGING MARKET DEBT SUCH AS MEXICO, EASTERN EUROPE ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING: I want to go back to something of this summer that you said that you're expecting a shift from a market price for liquidity to one price for growth. Has that worn out yet? What is the best investment in that scenario? GENE TANNUZZO, PORTFOLIO MANAGER, COLUMBIA MANAGEMENT (ENGLISH) SAYING: We think it has, but we think it's fully reflected in US valuations for the most part, so you can look at the valuations of the US equity market which is near all-time highs or at all-time highs today. And we think that that's basically priced in. What comes next I think is very important for investors and we're starting to see that transition to growth expectations improving in Europe. And we think the next phase really is emerging markets. So we think in a bond portfolio, with less constraints, we think it's important to look at emerging market debt to look specifically at nations that are benefiting from the improved growth in the US ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING: Such as? GENE TANNUZZO, PORTFOLIO MANAGER, COLUMBIA MANAGEMENT (ENGLISH) SAYING: Specifically looking at countries like Mexico which is benefiting directly from growth in the US, looking at certain countries with stronger current account balances in Eastern Europe that are benefiting from improved growth in Europe itself, including the European periphery. We're trying to avoid countries that are specifically commodity-dependent, so specifically some Latin American countries like Peru or Brazil, we want to be a little bit more cautious on, but at a certain point, local yields start to look pretty compelling. So if you look at Brazil just as a case in point, a very resource-dependent economy, but with local yields in the 11% range, at some point it starts to make sense for what is still an investment grade issuer.

• published: 31 Oct 2013
• views: 1