Tag : debt

The great rotation from fixed income to equities is yet to occur. But the future of the asset class is up for debate as the Federal Reserve looks to taper its QE programme.

The firm appoints Scott Greenberg from Morgan Stanley as the first Asia representative of its global capital markets team. He will target primary equity and debt investment opportunities.

Asian fixed income has hit record levels of foreign ownership, but stickier offshore investors should preclude a 1997-style crash, says Western Asset's Lian Chia-Liang.

The firm's regional head of sales, Charmian Wan, says Asian institutions are looking at less traditional fixed-income plays such as convertible bonds for the first time.

They doubt the Fed's third round of quantitative easing will drive inflows into the region's debt market or solve any of Asia's long-term economic problems.

The US house’s head of Asian fixed income says a renewed focus on the region’s bonds should result in a change in how they are priced and traded, amid a strong home bias.

John Greenwood, chief economist at Invesco, speaks about the impact of the sovereign debt crisis on developed economies and the strategies needed to get them out of it.

The five-year outlook for Asia remains positive provided the region heeds the lessons learned in the US and moves towards opening up onshore markets to offshore investors, say panellists.

Long term, Asian fixed income is the place to be, but in the shorter run, investors should perhaps be more cautious, argues a panel of specialists.

Jim Walker of Asianomics argues that, due to the euro’s troubles, the renminbi is actually going to weaken against the dollar in the short term, in a last-ditch effort to sustain Chinese economic growth.

In the US equity market, Scott Glasser of ClearBridge Advisors recommends increasing exposure to pharmaceuticals and cutting allocations to the energy sector, among other things.