Despite recent record inflows into US municipal bonds, a lack of familiarity and heavy due diligence efforts have held back Asian investors’ interests in the asset class.
Having hired its first trader in Singapore, the US fund house is opening a branch in Japan and plans to add more staff in the region as part of an international push, AsianInvestor can reveal.
The argument for raising inflation targets is that it would give central bankers more room to use interest rate policy, but some investment industry executives have their doubts about the concept.
Emerging markets will offer relative value opportunities next year, yet investors should also be mindful of derisking as the credit cycle nears its end, hears an AsianInvestor forum.
Bond fund managers are focusing on the pace and degree of rising US interest rates as the next opportunity for the Federal Reserve to act looms.
Bond managers expect the yield curve for US Treasuries to flatten, meaning the long end won’t react much to a Fed rate hike.