Reduction In Templeton Exposure “Good For Hungary”

  • 7 May 2015 9:00 AM
Reduction In Templeton Exposure “Good For Hungary”
Franklin Templeton’s gradual offloading of Hungarian bonds is positive for Hungary since it lessens the exposure resulting from a concentration of debt held by a single investor, a debt management official said. The global investment firm, the biggest single investor in Hungarian forint government securities, has sold 20% of its 2,000 billion Hungary portfolio, AKK chief György Barcza told public television news channel M1.

The reduction in Templeton’s holdings was expected, he said, adding that it was not in Templeton’s interest to “dump” the holdings on the market.

Barcza noted that Templeton had earned a 30% return on the Hungarian securities it bought in 2012, when yields were at 7-9%.

The investor booked a loss on its Ukrainian portfolio at the same time, he added.

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