BNY Says LatAm FX Rotation Favors Equities and Carry
Bank of New York Mellon strategist Geoff Yu notes that crowded LatAm bond exposure is unwinding as higher U.S. yields drive real-rate repricing, with flows rotating toward regional equities. BNY maintains a constructive tactical view on Latin American markets.
Geoff Yu, a strategist at BNY Mellon, observes that crowded positions in Latin American bonds are being unwound. The move is attributed to a domestic repricing of real-rate risks triggered by higher U.S. yields.
Flows are rotating toward regional equities and carry trades as a result. BNY retains a constructive tactical outlook on Latin American markets, favoring equities and FX carry over fixed income.
Source: FXStreet Forex News