Schroders Wagers Big on Hungarian Euro Adoption Bets

Schroders Plc has invested in Hungarian bonds as part of its strategy to profit from the country's push towards adopting the euro. James Ringer, who manages a bond portfolio with an unconstrained mandate, sees Hungarian bonds as the top sovereign trade globally.

Ringer has exposure to both hard-currency and local debt, betting that Hungary's government yields will converge with those of its European peers already in the eurozone.

The move by Schroders is reminiscent of the 1990s, when investors bet on countries' adoption of the euro, leading to significant gains. Ringer's focus on Hungarian bonds reflects his confidence in the country's ability to meet the necessary criteria for joining the eurozone.