Bonds
$48 Billion Bond Investor Says East EU Risks Outweigh Return
- US and higher-yield names more attractive, Brandywine says
- Yields in eastern Europe don’t compensate for risk: Vaughan
Eastern Europe’s political and economic risks are too high to justify buying its bonds at current yields, according to Brandywine Global Investment Management.
Brandywine, which manages $48 billion in fixed-income assets, prefers to remain on the sidelines in the European Union’s east until it sees sufficient stability, as well as price growth becoming more manageable, said William Vaughan, a London-based associate portfolio manager at the firm.