Unconventional Investment No One Talks About - Portfolio Manager Tina Vandersteel Explains

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Today’s guest is Tina Vandersteel, who is the head of GMO’s Emerging Country Debt team. She’s been with GMO for almost two decades.
In today’s episode, we dive into Tina’s teams’ recent piece about what they call a possible “once-in-a-generation opportunity” in emerging market local currency debt. Tina gives a great overview of the emerging market debt asset class and then we dive into the reasons behind her team’s call. She shares why today is reminiscent of 2004 and how she thinks about things like liquidity panics and sanctions risk. And you won’t want to miss her hot take on China.
It’s not often you see the words ‘once-in-a-generation’ from a well-respected shop like GMO so I’m excited for you all to listen in.
To see links or read the transcript of the episode, visit us at mebfaber.com/2024/02/16/tina-...
Read the piece about the once-in-a-generation call here www.gmo.com/globalassets/arti...
(0:15) - Welcome Tina to the show
(0:56) - Overview of emerging market local debt
(3:15) - What are Brady Bonds?
(6:41) - Delving into sovereign debt issues
(10:17) - Breadth of opportunity in emerging market debt
(11:46) - The overvalued US dollar
(23:48) - China’s place in emerging debt markets
(28:21) - Identifying countries at risk of default
(36:23) - Highlighting opportunities arising from geopolitical events
(41:00) - Tina’s most memorable investment
(45:48) - Sharing Tina’s most controversial viewpoint
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[@andreyb.1835]

Good talk! Thank you!

[@nickthequick]

As usual there is a pearl to find in the last five minutes. Great show.

[@ggttuuxx]

So much knowledge. Thanks Meb for an excellent guest. GMO is an impressive firm.

[@jays9870]

Really interesting talk; thank you both for bringing this conversation to us.

[@darrenritsick4219]

This was the Calomiris paper in the last few minutes? There were a couple good podcasts with him, one by Demitri Kofinas on Hidden Forces

[@lowtech_1]

That was a good one 👍

[@eyzup]

Fascinating

[@goatshit23]

It means to get paid for holding the position, for example hedge funds earn 2% carry even if they don’t generate returns

[@RafitoMembroza]

When she talks about “carry”, what does it mean?

[@Nuganics]

Japanese housewives explained it to me. Search How Japanese Housewives Outsmarted Global Finance and tell me what you think.

[@nickthequick]

try googling "Interest rates carry trade"

[@ggttuuxx]

"Carry" is bonds 101. Go read a bond book and you'll be able to appreciate what she said a lot more.