Investors’ Dreams of Czech Payday Come With a Caveat: Be Patient
- Erste predicts gradual koruna gains once currency cap lifted
- Foreigners double their sovereign bond holdings over two years
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When it comes, the hottest currency bet in the Czech Republic may play out in slow motion.
Foreign investors have shrugged off negative yields on koruna-denominated sovereign debt, doubling their ownership of those bonds in the past two years in anticipation of profiting from a jump in the currency when the central bank dismantles a 2 1/2-year foreign-exchange cap next year.