T Rowe Price takes Profits on Iraq Debt

By John Lee.

T Rowe Price has reportedly been selling some of its Iraqi government debt, in anticipation of renewed political turmoil in the country.

Investment Week reports that the fund manager has been overweight in Iraq for several years, and at one time was the largest Iraqi debt holder.

The company's emerging market debt specialist, Jeff Kalinowski, said:

“We do see further turmoil. Speaking long-term we still have an overweight but we have been paring it back as valuations have come down.

“We have seen rising violence. [Iraqi prime minister] Maliki is a very weak leader in Iraq.

"He has been shunning the [minority] Sunni party and there is likely further violence to come.”

The fund had benefited from several years of good performance in Iraq, he added.

(Source: Investment Week)

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