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.