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Countries In-Depth

Will Colombian Markets Decouple From Oil Prices?

by Juan Egana, Latin America Strategist  

Despite higher oil prices, Colombian risk assets will underperform their EM peers in the months ahead. The domestic economy is evolving from stagflation into recession, and fiscal and political risks will raise the risk premium of Colombian assets. Take profits on the yield curve inversion trade and stay short COP vs. USD.

BCA Research | Emerging Markets Strategy

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