Betting on Asia's debt, Europe's hunt for yield heads east

People walk in front of a bank’s electronic board showing share indexes at the Hong Kong Stock Exchange in July.

“Now people are looking for the valuation gap to close,” said Hayden Briscoe, head of Asia-Pacific fixed income at UBS Asset Management. Like elsewhere Asia’s junk bond spreads, the premium over safer assets that buyers demand for riskier debt, have narrowed sharply since March. Asia is the only region Goldman Sachs Asset Management says it expects to grow this year, and as a consequence, it forecasts junk default rates at 4% compared to 8% in the US for 2020.

Goldman Sachs Asset Management, like UBS-AM’s Briscoe and HSBC Global Asset Management’s Allen, told Reuters it has noticed demand from Europe lately. “That makes a big part of Asia’s high-yield market run low-correlation with the global high-yield market,” she said.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks firmer, Asia mixed | Malay MailPARIS, Aug 31 — European stock markets were mostly firmer in quiet trade today after the Federal Reserve signalled it would keep interest rates at unprecedented lows for as long as it takes to get through the coronavirus crisis. London was closed for a public holiday, leaving Paris and...
Source: malaymail - 🏆 1. / 86 Read more »

Fitch expects constrained govt spending despite increased debt limitThe research firm also says that M'sia has one of the highest debt limit in emerging Asia.
Source: malaysiakini - 🏆 20. / 51 Read more »

Economists look at how to finance higher welfare aidWith the national debt already at 59% of GDP, the government may not have sufficient revenue. FMTNews WelfareAid Malaysia
Source: fmtoday - 🏆 5. / 72 Read more »