Alfa Capital sees no outflow of foreigners from carry trade

MOSCOW, Feb 14 (PRIME) -- Russian managing company Alfa Capital do not expect a lower share of foreigners in carry trade operation, Alfa Capital’s portfolio manager Dmitry Dorofeyev told reporters on Wednesday.

“We have very high real rates. We expect no decrease in carry trade operations,” he said.

The global trend is that the yields are falling, but the yields in Russia are still high. U.S. treasuries brought no yield to investors over the past three years, and yielded only 1% over the past five years, pushing investors inevitably to other markets, he said.

“Now the share of non-residents (in Russian OFZ federal bonds) is slightly more than 33%. I think it will grow. It is at 33.1% now, and it will grow in the future. Non-residents play the major role in placement of our sovereign debt, they buy more than 50% of all issues, and the trend is there to stay,” he said.

No investor fled the Russian market in spite of expectations of new U.S. sanctions. “Inflows of money have restored since the end of January, and the share of non-residents in OFZ has increased,” he added.

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