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.
A combination of relatively strong economic fundamentals and appealing yields is attracting the attention of asset owners in the region and beyond.
With a cautious sigh of relief, we are now moving into the final stages of 2020. Despite the challenges faced this year, the outlook for bond investors in Asia remains positive.
Institutional investors in Europe are looking to invest more into emerging market high yield bonds in an effort to boost returns, despite the additional risk they entail.
Moody’s and fund managers believe further debt downgrades are an inevitability as Covid-19’s impact continues. China could offer both strong investments and potential defaulters.
The pandemic is set to reduce globalisation, explode debt burdens and cut traditional returns. Investors need to adapt, but opportunities will emerge amid as the pandemic subsides.