Asian credit hedge funds back in favour

The current low interest-rate environment, combined with an abundant issuance of Asian corporate bonds, has set the stage for a comeback of credit hedge funds in the region. Industry data provider Eurekahedge lists fixed income hedge funds as the second-best performing Asia strategy last year, with an average gain of 11.7%, behind event-driven funds, which returned 15.6%. A chief reason behind this performance has been a renewed focus on credit amid a low interest-rate environme…