Fixed Income and Currency Strategist

Gautam Jain, PhD, CFA

Gautam Jain has over 25 years of experience covering global emerging fixed income and currency markets, both as a strategist and a portfolio manager. He has worked in buy-side and sell-side firms, including The Rohatyn Group (TRG Management), Barclays Capital, and Millennium Partners. He has helped manage emerging markets local-currency and hard-currency debt funds. The assets that he covers include currencies, interest rates, sovereign credits, and related derivatives. He specializes in portfolio construction, smart-beta index creation, and asset allocation. Mr. Jain holds a Ph.D. in Operations Research from Columbia University and is a CFA charter holder.

Chile’s Market-Friendly Election Outcome Allows Exit from Trade Recommendation

2022 High Conviction: Thematic Rate Curve Steepening Trades in EM

Does Chile’s Rate Curve Flattening Offer an Opportunity?

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

FX & Rates

<ul>
<li>Chile’s rate curve has bear-flattened driven by the short end with inflation running at a decade high on the heels of strong demand, leading to an aggressive monetary tightening cycle.</li>
<li>Over the coming months, the monetary tightening cycle should end with inflation coming off the highs and growth slowing down sharply, which should lead to steepening of the curve.</li>
<li>Additionally, with the still-high political uncertainty and the fiscal deterioration of recent years continuing to weigh on the long end, I recommend a beta-neutral 5s10s curve steepening trade.</li>
</ul>


Chile’s rate curve has bear-flattened driven by the short end with inflation running at a decade high on the heels of strong demand, leading to an aggressive monetary tightening cycle.
Over the coming months, the monetary tightening cycle should end with inflation coming off the highs and growth slowing down sharply, which should lead to steepening of the curve.
Additionally, with the still-high political uncertainty and the fiscal deterioration of recent years continuing to weigh on the long end, I recommend a beta-neutral 5s10s curve steepening trade.


Alpha Bites: A Local Rate Curve Steepening Trade in Chile

CLP 10Y

Alpha Bites: A Local Rate Curve Steepening Trade in Chile