Thanks to the current rise in yields, the key return driver of the bond market is set to change but its bull run will very likely continue.
The Covid-19 pandemic has brought investing opportunities in credit markets amid turbulence, said CIOs from AIA, Prudential Asia and Ping An at an AsianInvestor event.
The number of lenders reducing their Asian exposure is seen to be growing fast amid the coronavirus crisis, leaving asset managers keen to fill the financing gap.
The US state's biggest retirement fund has nearly trebled its target allocation to private credit and is adding private equity and real assets too. It is also eyeing other ways to boost returns.
Regional life insurers will seek to reweigh their portfolios to seek out sufficient returns in the low rate environment, reduce duration gaps and adapt to new capital rules.
Asian investors found fixed income appealing in the second quarter, but selective equity allocation might be a better bet for the rest of the year, say active investing experts.