A combination of relatively strong economic fundamentals and appealing yields is attracting the attention of asset owners in the region and beyond.
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.
The firm's director of asset management sees Asian debt as a good post-Covid opportunistic play, but Spanish insurer Mapfre is put off by weakening Asian currencies.
Insurance firms in Asia and elsewhere have moved to take advantage of pandemic-driven spread widening on both high yield and investment grade debt.
With spreads on Asian junk bonds having widened sharply, are they a good bet, despite widespread concern over expected corporate defaults in the coming months?
Asian investment-grade bonds may be less at risk of downgrades to junk than those elsewhere, but asset owners – particularly insurers – are being advised to take precautions.