Fixed Income and Currency Strategist

Gautam Jain, PhD, CFA

Gautam Jain has over 25 years of experience covering global emerging fixed income and currency markets, both as a strategist and a portfolio manager. He has worked in buy-side and sell-side firms, including The Rohatyn Group (TRG Management), Barclays Capital, and Millennium Partners. He has helped manage emerging markets local-currency and hard-currency debt funds. The assets that he covers include currencies, interest rates, sovereign credits, and related derivatives. He specializes in portfolio construction, smart-beta index creation, and asset allocation. Mr. Jain holds a Ph.D. in Operations Research from Columbia University and is a CFA charter holder.

Rates 10y Dashboard: Mexico – Delaying the Inevitable Monetary Tightening

Alpha Bites: Take Profits on Two Rates Recommendations

Rates 10y Dashboard: Which EM Countries Stand to Benefit if US Rates Vol Keeps Falling?

Rates 10y Dashboard: Which Countries Have the Steepest Curves?

FX Dashboard: Monitor Colombian Peso for an Entry Point

Rates 10y Dashboard: Colombia’s Curve Steepens on Fiscal Concerns

Alpha Bites: Receive Chile 10y Vs Pay Chile 2y with Receiving Bias

FX & Rates

<p>In this week’s Alpha Bites, we recommend receiving Colombia 5y against paying Mexico 5y rate. Colombian assets have sold off as the government had to withdraw its fiscal consolidation bill on the back of deadly street protests, leading to credit downgrade worries. The downgrade is now reflected in the prices, at least partially, and the rates curve has considerable rate hikes also priced in. In contrast, rates in Mexico are at a greater risk of moving higher in our view especially following the recent high inflation readings and expectations in surveys.</p>

In this week’s Alpha Bites, we recommend receiving Colombia 5y against paying Mexico 5y rate. Colombian assets have sold off as the government had to withdraw its fiscal consolidation bill on the back of deadly street protests, leading to credit downgrade worries. The downgrade is now reflected in the prices, at least partially, and the rates curve has considerable rate hikes also priced in. In contrast, rates in Mexico are at a greater risk of moving higher in our view especially following the recent high inflation readings and expectations in surveys.

Alpha Bites: Receive Colombia 5y Versus Pay Mexico 5y Rate

COP 5Y

Alpha Bites: Receive Colombia 5y Versus Pay Mexico 5y Rate