Investors are still buying high-yield and EM sovereign and corporate debt, at the expense of developed-market investment-grade bonds, notes the Swiss fund house.
Tag : high yield
The HK asset manager has doubled its AUM after being handed a long-only corporate bond portfolio by a reinsurance firm. It is also planning a private-lending strategy.
Junk bonds may offer attractive returns relative to sovereign debt, but both asset classes are at record low yields. Are investors taking sufficient note of fundamentals?
But this approach by developed-country governments is allowing emerging-market banks to take the lead in servicing investors in their local debt markets, argues Jan Dehn.
After gaining traction in retail distribution in Japan, BlueBay Asset Management is looking at marketing fixed income funds to more high-net-worth investors in Asia ex-Japan.
The firm brings in a sell-side credit veteran as it continues to build its regional investment team.
The risk-return profile of US high-yield fixed income, plus its liquidity, makes it the most attractive asset class for global investors, says strategist James McDonald.
Even traditionally conservative Asian institutions are being drawn to non-investment grade US debt vehicles, notably high-yield bonds and CLOs, says Asia-Pacific head Nick Hoar.
The UK asset manager is attracting Asian institutional clients to new and established strategies, but aims to boost its regional retail AUM and is mulling new products.
Elizabeth Allen has joined from Moody’s Investors Service to boost the credit research effort, in light of growth in the Asian bond market.
While generally positive on the opportunities in Asia’s high-yield credit market, fund managers do have concerns, not least about the risks of CNH bonds.
Dominique Jooris and Julian Trott of Goldman Sachs outline what needs to happen before Asian bond markets are fully developed.
