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Exclusive asset owner survey: mapping the future for HKD bonds

A survey of around 100 institutional investors across Asia in late 2019 - conducted by AsianInvestor and HSBC Global Asset Management - has revealed the appetite, trends, challenges, opportunities and a potential roadmap for Hong Kong dollar (HKD) bonds in portfolios.
Exclusive asset owner survey: mapping the future for HKD bonds

Given the depth of insights gleaned from the research, we have split the findings into the two articles below. We also interviewed HSBC Global Asset Management's fixed income CIO to get her assessment of the HKD bond market.

Key survey take-aways: turning more cautious on HKD bonds
There is continued appetite for this asset class as a portfolio tool for investors to achieve specific goals such as matching liabilities and avoiding currency risk. But greater choice, more liquidity and higher yields are in growing demand.

Asset owners urge more variety in HKD bonds
Even the most active buyers of HKD bonds want more from this asset in terms of liquidity, issuer diversity and tenor – otherwise it might become more marginalised in portfolios.

Boosting the appetite of asset owners for HKD bonds
Cecilia Chan, chief investment officer for fixed income at HSBC Global Asset Management in Asia-Pacific, explains why the firm's strategic outlook on HKD bonds remains positive, along with the key benefits of this asset for portfolios - currency liability matching for local investors, a yield carry over HKD cash holdings, potential stable income, and relatively low volatility with no exchange rate risk.

For more information on the HSBC ABF Hong Kong Dollar Bond Index Fund, please click here.

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