Fund managers say various assets within the fixed income universe are well positioned as US economic growth slows down.
Tag : investment grade
In partnership with PineBridge Investments
Asia investment grade (IG) credit should benefit from both the end of the US hiking cycle and potential global economic slowdown, with structural demand likely from burgeoning investor interest, explains Omar Slim, co-head of Asia ex-Japan fixed income at PineBridge Investments.
The insurer is assessing an active Chinese equity mandate to capture alpha return by selecting sectors, industries, and companies.
In partnership with PineBridge Investments
Strong credit fundamentals across Asia are expected to continue to bode well in 2024 but selectivity remains key. PineBridge’s co-heads of Asia ex Japan fixed income, Omar Slim and Andy Suen, share their convictions for Asia investment grade and high yield this year.
In an exclusive interview, the head of Taiwan’s Bureau of Labor Funds revealed how the pension turned more aggressive in bond investments to adapt its $201 billion portfolio to higher rates.
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China’s bond market is beginning to look up as the country reopens and government rescue plan for the property sector kicks in. But the market will remain volatile compared with developed markets.
Asian sovereigns and investment credit have become attractive again as the market moves towards the end of the rising rate cycle. But China's fixed income is still not one of such kind.
In partnership with PineBridge Investments
Arthur Lau, head of Asia ex-Japan fixed income, and Emily Lam, client portfolio manager, at PineBridge Investments, highlight the continued appeal of Asia investment grade (IG) as well as high yield (HY) bonds for their relatively stable and attractive source of yield and diversification.
The $20 billion Korean public pension fund will reduce fixed income exposure both at home and overseas to below 35% by the end of this year, and to below 31% by end-2025.
The Hong Kong-based insurer is looking to investment-grade bonds in the region as it seeks decently yielding debt that is unlikely to be downgraded into junk territory.
Regional asset owners have started jumping into newly issued and highly rated US corporate bonds as they look to take advantage of wider spreads, say fund experts.
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.
