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New York-based Oppenheimer International Bond Fund and Strategic Income Fund will continue increasing positions in Russian and Brazilian sovereign debt, based on the belief that recent instability in the U.S. equity markets has pushed risk premiums unduly high in those countries, says Ruggero De'Rossi, international faced-income portfolio manager.
Oppenheimer allocates roughly 18% of its USD1 billion emerging markets bond assets to Russia, an overweight position compared to the J.P Morgan EMBI Global Index and 18% to Brazil, which is underweight compared to the J.P. Morgan index. De'Rossi reasons that he will increase his position in Russia to 3% over the index and 2% over in Brazil.
In Russia,...