DoubleLine Targets Latin America Rising Stars, Shuns China Debt.

DoubleLine Capital's emerging-market debt fund, managed by Su Fei Koo and Mark Christensen, is focusing on bonds from Guatemala and Paraguay while avoiding riskier credits. The managers believe that these two countries have the potential to be upgraded from junk territory in the near future. They are being cautious with lower-rated countries due to anticipated volatility surrounding the upcoming US elections. The fund has performed well this year, returning 7.4%, and is currently outperforming 89% of its peers. The managers also find Panama's debt attractive after a selloff last year. The fund has previously exited Russian debt after the annexation of Crimea and has avoided debt from countries in the region at the onset of the war. Additionally, the fund has recently divested from China debt due to concerns about government meddling. [Extracted from the article]