subscribe to our newsletter sign up

Investors look to Asia for fixed income

Asia, map, fixed income, investors

Fixed-income investors around the world have turned their sights to Asia with “unmistakable” momentum, a new report has revealed.

According to S&P Global Ratings’ Ritesh Maheshwari, 2018 has so far been good for Asian bond markets, despite it generally being a “rough year”.

Describing the markets as possessing an “unmistakeable” momentum, Mr Maheshwari said governments and companies are extending the variety of debt offerings, and in turn, “global investors are positioning to grow their long-term presence in the region".

The managing director of market and franchise development’s commentary was informed by S&P’s global bond survey. The survey, conducted with HSBC, found that 91 per cent of global investors plan to increase their exposure to Asian credit markets in the next year. That’s up from the last four years’ 80 per cent average.

S&P said investors predict spreads will continue widening for sovereign and high yield debt, but remain optimistic, anticipating China’s economic growth will continue with a gradual slowing.

Investors also see infrastructure and telecoms opportunities, with default risk a minor concern.

The “surge” in interest is most apparent in non-Asian investors, with 88.2 per cent planning to increase exposure, reflecting a 12.8 per cent increase on the results from the second half of 2017.

Investors look to Asia for fixed income
Asia, map, fixed income, investors
nestegg logo
subscribe to our newsletter sign up
Recommended by Spike Native Network
Anonymous - It's interesting that among the investment options referred to, real estate has not earned a mention. When Ms Kohler informs us that investments in.......
Anonymous - To the extent that the shareholder only withdraws their original investment amount, there is no issue. However once any amount above that investment.......
Ro TIMMS - Now that we are all firmly in the grip of the "Third Industrial Revolution"...... how long before you envisage "Flying Cars" ???....
Neil and Julie Fitzg... - Excellent article. Reading it has just answered my nagging doubt about sufficient funds, we could retire right now.....