LatAm Fundamentals Solid, Says PIMCO

Despite a shaky performance over the past two weeks, LatAm fixed income assets remain attractive thanks to strong fundamentals for both corporates and sovereigns, PIMCO portfolio manager Adam Borneleit tells LatinFinance. “It’s hard to know where the pricing settles out in the short term, but fundamentally, [LatAm] is doing well,” says the investor, who helps manage more than $48bn in EM assets for the fund. Having pre-funded for the coming year, sovereigns are in a good position and can even consider buying back debt, adds Borneleit. Overall, internal dynamics in most LatAm countries are also solid, with strong domestic demand helping keep corporates, most of which have kept low leverage levels, also in good shape, says Borneleit.