Regional asset owners have started jumping into newly issued and highly rated US corporate bonds as they look to take advantage of wider spreads, say fund experts.
Asia Pacific investors plan to allocate more to Chinese bonds over time, but emerging markets look set for a rocky 2020 in light of the pandemic and renewed US-China squabbling.
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.
Nine experts share their takes on how institutional investors can best respond to what seems to be a spiralling bond market rout.
Cecilia Chan, chief investment officer for fixed income at HSBC Global Asset Management in Asia-Pacific, explains why the firm's strategic outlook on Hong Kong dollar bonds remains positive.
Even the most active buyers of Hong Kong dollar (HKD) bonds want more from this asset in terms of liquidity, issuer diversity and tenor – otherwise it might become more marginalised in portfolios.