Bond investing in Asia: unique opportunity

Peaking bond yields, measured rate hikes in Asia and still healthy credit fundamentals among Asia’s higher quality corporates present bond investors with an attractive entry point to the Asian bond market. “As China growth risks recede, we are likely to see flows return to Asian bonds, further supporting prices,” writes Danny Tan, Head of Fixed Income, Eastspring Investments in a recent insight.

However, China’s economy needs to stabilise in order for investor sentiment, especially sentiment towards Asian assets, to improve, says Tan. “On this front, Chinese policy makers have announced greater fiscal support in the form of tax cuts. Infrastructure investment will also be an important growth driver. ”

Read more at Eastspring.com/lu.