Is It Wise to Give Chavez Your Cash? ; Lending to Governments of Emerging Markets Can Be Profitable, but Be Wary

Summary

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HOW would you feel about lending money to Hugo Chavez, Venezuela's Leftwing firebrand president? What about taking an IOU from Russian president Dmitry Medvedev? Or maybe writing a cheque to the government of Iraq?

Strange as it may seem, lending money to emerging markets by investing in government bonds might actually be a better bet over the next decade than giving it to the heavily indebted nations of the Western world.

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Extract

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Is It Wise to Give Chavez Your Cash? ; Lending to Governments of Emerging Markets Can Be Profitable, but Be Wary

Richard House, who runs Threadneedle Emerging Market Bond Fund, has bonds issued by Russia, Venezuela and Iraq within his top ten fund holdings. These sit alongside investments from B...

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