$460 billion Japan fund hunts for bargains in emerging bonds

For Japan’s Asset Management One Co., the sell-off in emerging-market bonds is overdone and the time is ripe to hunt for bargains.

The $460 billion money manager is bullish on debt in developing nations, particularly in Mexico. That’s even as Moody’s Investors Service, S&P Global Ratings and Fitch Ratings have all recently downgraded Mexico’s sovereign rating. It is also overweight on Polish bonds.

"We are very positive about emerging markets as a whole and there is more chance to raise profits by investing in EM bonds this fiscal year in the situation where yields in developed economies are falling,” said Yusuke Ito, a Tokyo-based fund manager at Asset Management One, said in an interview.