An active United Statesbased investor is considering a portfolio allocation to the bonds of a major commodities

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An active United States–based investor is considering a portfolio allocation to the bonds of a major commodities producer headquartered in an emerging market economy. The issuer is a major exporter, and commodity exports comprise a significant proportion of the country’s economic growth. Describe how the investor would decide between purchasing a higher-yielding, local-currency-denominated bond and a lower-yielding, US-dollar-denominated bond with otherwise similar features.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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