Foreign Currency Denominated Bonds

Elevated Yields. Diversified Bond Portfolios

Given the low yield interest rate environment in the US, Canada and Europe, investors have been scouring the globe for opportunities to enhance yield in their portfolios.

Emerging markets have historically had higher yields than their developed market counterparties since they needed elevated yields in order to attract investment capital and to combat high inflation.

The emerging markets group at ScotiaCapital underwrites bonds denominated in emerging market currencies but issued by high-grade issuers. The issuers are generally rated AAA or AA and are either supra-national agencies – such as the World Bank – or large financial institutions – such as KFW or Depfa Bank.

The Burak Hannon Brojde Group currently offers risk-tolerant investors interested in elevated yields and geographical diversification of the fixed income portion of their portfolios, bonds denominated in the following currencies:

• Brazilian Real
• Peruvian Sol
• South African Ran
• Hungarian Florint
• Icelandic Krona
• Turkish Lira