Masters in Business

Tina Vandersteel on Emerging-Country Debt (Podcast)

12 snips
Jan 21, 2022
Tina Vandersteel, the Head of GMO's Emerging-Country Debt team, shares her expertise from J.P. Morgan, where she developed strategies for high-yield bonds. She discusses the complexities of investing in emerging markets, highlighting risks and potential returns. Tina emphasizes the importance of firsthand experiences over sensationalist media narratives, using Brazil's economic shifts as a backdrop. She also explores currency risks, the impact of political dynamics on investments, and her journey from finance to pursuing Olympic rowing, balancing ambition with personal passions.
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INSIGHT

Local Pessimism

  • Locals in emerging markets tend to be pessimistic due to media focus on negative news.
  • This negativity can create opportunities for investors who can assess situations objectively.
ANECDOTE

Venezuela's Debt

  • Venezuela continued paying its debts even after it couldn't afford it in 2014.
  • They prioritized paying foreign creditors by extracting oil and starving its population.
INSIGHT

Emerging Markets Definition

  • Emerging countries are defined by low/middle income or past defaults, indicating payment risk.
  • Emerging markets relate to foreigner accessibility, tax implications, and local market regulations.
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