LatinFinance has published an article on the outlook for Chilean bonds as the country heads toward its presidential elections. Martti Forsberg, Portfolio Manager at LGT Capital Partners, shared his perspective on current market conditions.

He said that while Chile’s economic fundamentals remain strong, spreads on hard-currency bonds are “quite tight” − limiting their appeal at current valuations. Martti also expressed a cautious stance on local peso-denominated bonds, explaining that other emerging markets appear to have more scope for monetary policy easing, which could make their local bonds more attractive to investors. “There is fierce competition,” he said, underlining the challenge that Chile faces in standing out in a crowded market.

Find out more here (article behind paywall):