• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Fixed Income

Franklin Templeton's Hasenstab hit with $1.8bn Argentine bond losses - reports

Franklin Templeton's Hasenstab hit with $1.8bn Argentine bond losses - reports
  • Mike Sheen
  • 14 August 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Franklin Templeton bond funds managed by Michael Hasenstab have reportedly lost a total of almost $1.8bn (£1.5bn) in a single day as a result of the manager's exposure to Argentinian government bonds, which were hit will with a sell-off in the wake of President Mauricio Macri primary elections defeat over the weekend.

Hasenstab has been one of the biggest buyers of Argentine debt, having purchased more than three-quarters of $3bn "Bote" made available in May 2018, with six of his funds building significant exposure to the country's bonds.

Related articles

  • Franklin Templeton's Hasenstab hit with $1.8bn Argentine bond losses
  • Templeton's Hasenstab defends Hungarian debt position
  • Franklin Templeton holds 10% of Hungary's govt debt - reports
  • Hungarian bond yields soar above 10% on cancelled debt auction

However, after the weekend's news investors have fled the assets on fears of a return to populist Peronist rule in October's presidential election, driving the peso down more than 20% against the dollar and the yield on shorter-dated Argentine bonds up to distressed levels.

The likelihood of a debt default in the next five years has also spiralled to 75%.

In the wake of the rout, Hasenstab's $11.3bn Templeton Emerging Markets Bond fund, which has more than 10% exposure to the debt, fell 3.5% cent on Monday (12 August) for a loss of about $400m (£330m), according to FT calculations.

The $17.4bn Templeton Global Total Return fund Class A fell by 2.5% as a result of its 6% exposure for a loss of around $440m (£365m), and the $33.1bn Templeton Global Bond fund saw a decline of 1.8% for a loss of around $592m (£491m). Three of the other funds managed by Hasenstab lost approximately $362m (£300m).

Franklin Templeton is not the only group suffering losses in the sell-off of Argentine debt, with Ashmore Group and Fidelity also being hit with large declines.

JPMorgan analysis shows that "overweight Argentina" was one of the most popular trades at the end of July. Other holders of significant levels of Argentina's dollar-denominated debt include BlackRock, T Rowe Price and Pimco, according to Bloomberg.

 

This article was first published by InvestmentEurope's sister title Investment Week

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Fixed Income
  • Fixed Income
  • Franklin Templeton Investments
  • Argentina
  • Currency
  • emerging markets debt
  • Fixed income (Emerging market debt)

More on Fixed Income

Investors Trust launches fixed-income plans for int'l investors

  • Fixed Income
  • 12 June 2020
Insight Investment introduces new ESG risk rating for fixed income investors

  • ESG
  • 09 June 2020
Eaton Vance appoints business development director for Germany and Austria

  • People Moves
  • 02 June 2020
European ETFs survive the redemption test, finds report

  • Fixed Income
  • 27 May 2020
AMX adds two to Irish operations

  • Alternative
  • 18 March 2020
Back to Top

Most read

EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
Aviva announces exit from Turkey
Aviva announces exit from Turkey
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading