Elsewhere among government securities, Valensise plans to buy local-currency emerging market debt, especially Polish sovereigns. He says these are attractive because they performed poorly in the second half of last year and the zloty is cheap--meaning the firm does not have to hedge its position. Valensise also favors Hungarian bonds, which he deems a high-beta version of Polish bonds. He mentions that he may also add some South African government bonds, which still offer a bit of upside despite the recent rally. On the flip side, he will wait for a pullback in Turkish bills. Hard-currency denominated emerging market bonds, on the other hand, are a danger-zone, Valensise warns. He says dollar-denominated Brazilian bonds, for example, are likely to drastically underperform on the back of any tightening by the Federal Reserve.