Why Indian govies are worth a look

Salman Ahmed on Bonds

Developed world corporate bonds are downright pricey and investors are missing the quality-focused carry trade which selected EMD, such as Indian government bonds, are presenting, argues Lombard Odier's Salman Ahmed.

In the US the near all-time-high spread between nominal GDP growth of over 4% and the Federal Reserve’s fund rate of close to zero is likely to drive the expected next move in US interest rates. This move will come sooner than markets expect. Or at least so goes the argument as to whether the Fed will continue with its accommodative monetary policy stance. Recent comments from Fed chairwoman Janet Yellen have added uncertainty as they point to both dovish and hawkish risks in US monetary policy. Over the pond in Europe, despite slowing inflation (0.5% year-on-year in March 2014), the ...