BBVA Colombia Bondholders' Report: International investors continue to reduce their holdings of Colombian TES, only adding to UVR (linkers) holdings in August; total foreigner holdings continue to drift lower
- Foreign investors once again reduced their holding of Colombian TES in August, this time by about COP1.4trn, with their total holdings standing at COP111.5trn. In percentage terms, total holdings stood at 22.8% vs. 23.4% in July.
- International investors have now reduced their TES holding by c. COP9.0trn since January, in a shift that accelerated as of the second quarter.
- The reduction by foreign investors in TES holdings included less of a presence in nominal TES (COP2.0trn lower), while inflation-linked bond holdings - UVRs - increased (COP0.6trn).
- International investors and Hacienda were the main sellers in August, while BanRep, local pension funds, local banks and public trust funds were the main buyers.
- We currently have a more positive view on Colombian assets but note that some of the market, including offshore interest, seems to focus on higher-yielding short-term paper.