Citi analysts Donato Guarino,......>

EMERGING MARKETS: Citi analysts Donato Guarino, Luis Costa and Ayoti Mitta said

Emerging Market credit spreads "continue to experience a moment of relief this

week following the FOMC statement validating the recent dovish bias. We are more

defensive over the medium term."

- They add "high yielders" such as "Venezuela, Argentina and El Salvador in

particular - have been under the spotlight. In Venezuela, we recommend a default

neutral basis trade. We suspect the political noise in Argentina may continue

but we remain constructive on the credit."

- They also urge to do "Portfolio Overweights: Argentina, Colombia (duration),

Venezuela, Dominican Republic, Ecuador, El Salvador and Chile (duration) in

LatAm; Turkey, Hungary (duration) and Ukraine (allocation and duration) in

CEEMEA and Indonesia (duration), Philippines (duration) and Sri Lanka in Asia. 

- They also to do such "Portfolio Underweights: Colombia, Venezuela (duration),

Chile and Jamaica in LatAm; Russia, South Africa and Kazakhstan in CEEMEA and

Philippines in Asia."