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Bond investors wait for a recovery signal

Angus Hui, Asian fixed-income fund manager at Schroder Investment Management, says he will remain defensive until there is more clarity on what impact the US slowdown will have on Asia.
WhatÆs your strategy for 2008?In the next 12 months as a whole, we are positive on high-grade paper. High-grade valuations on banks and corporates are cheap compared to a year ago. While there are also good investment opportunities in the high-yield space this year, security selection is very important, and our high-yield investments will be on a case-by-case basis. We think there will be divergences in performance among credits, and our bottom-up credit selection focuses on names tha…
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