Pimco predicts ‘supervets’ will be even more attractive with Mexico and US elections – El Financier

As major elections loom in the United States and Mexico this year, Pacific Investment Management Company (PIMCO) is looking for the right moment. Join Bullish Bets in Latin American Markets,

Pramol Dhawan, head of debt markets, said price fluctuations linked to the presidential election would give traders an opportunity to buy Mexican assets, especially the peso. Emerging Companies buys asset management firm for $1.9 billion, For them, the surge in volatility offers bargains in assets that will benefit from further positive factors, ranging from the restructuring of global supply chains to interest rate dynamics.

“For us, Fundamentals will override any short-term volatilityDhawan said in an interview. “We zoom out a little and take a look at the most basic parts of Mexican history. “While there may be some volatility during the election, the fundamentals remain very good.”

Pimco, which has an overweight rating on Mexico and finds the peso attractive, has joined the group of Wall Street experts who There is a possibility of currency instability as voting approaches. From June 2nd.

Citigroup Inc. also signaled the possibility of inconsistent reactions to the election, while peso traders rose. Protection against exchange rate fluctuations against the dollar During the period before and after the United States elections in November, where everything points to a rematch between current President Joe Biden and former President Donald Trump.

But, for bulls, this uptrend is the time to buy the currency. The peso was the best performing major currency last year in the worldAccording to data compiled by bloomberg, Despite the decline of most emerging market currencies this year, the peso has continued to outperform its peers.