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.
HSBC Global Asset Management and Sun Life Financial make a case for continuing to buy non-investment-grade debt, but others are less convinced.
Junk bonds may offer attractive returns relative to sovereign debt, but both asset classes are at record low yields. Are investors taking sufficient note of fundamentals?
Even traditionally conservative Asian institutions are being drawn to non-investment grade US debt vehicles, notably high-yield bonds and CLOs, says Asia-Pacific head Nick Hoar.