Investors are captivated by fear of default contagion, driving market liquidity to determine sovereign solvency. This is wrong, but there is reason for optimism, says Western ...
Western Asset has hired Lian Chia-Liang to head its Asian fixed-income investment team in Singapore.
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.
Rajeev De Mello is leaving Western Asset in Singapore.
The ‘other’ king of the bond world, Kenneth Leech, is still optimistic about Asia despite it assuming the burden of tighter monetary policy.
Portfolio manager Rajeev de Mello says he is building exposure back up to corporate bonds and is starting to buy in Malaysia, the Philippines and Korea.
Rajeev de Mello talks about Asian currency appreciation, the appeal of short-term corporate debt and his plans to invest in renminbi bonds issued in China and Hong Kong.
Asset managers believe Western economies, other Asian currencies and commodities will benefit from renminbi reform. But they are less positive on China itself.
With government bond yields now more likely to rise than fall, investors will need to focus on both yields and credit spreads, says product specialist Mike Story.
Long-term, Western Asset Management is bullish on emerging markets, but currently the firm is overweight developed-market corporates.
Western Asset Management is opting to hold middle- to longer-dated issues in anticipation of flattening yield curves.
Fund managers at Western Asset Management believe asset allocation shifts from pension funds into credit is helping boost demand for corporate bonds.
The fund house remains focused on defensive industries and says risk assets should continue to outperform their risk-free government counterparts.
Downside risks to the US economy are fading, but upside opportunities look to be virtually non-existent, says Western Asset Management.
Western Asset expects tighter monetary policies in most South and Southeast Asian countries due to fresh concerns about increasing inflationary pressures.
Jim Hirschmann, CEO at Western Asset, explains the bond firm’s Asia strategy after acquiring Citigroup’s asset-management business.