Asset class in focus: Asian fixed income

Global asset owners believe China fixed income will bring good returns in the next two years, despite tougher regulations and some high-profile companies getting into difficulties.

The firm will soon roll out a Dublin-domiciled Asian fixed income product. It also expects more Japanese money to flow offshore and sees Philippine bonds as particularly attractive now.

Asian fixed income has hit record levels of foreign ownership, but stickier offshore investors should preclude a 1997-style crash, says Western Asset's Lian Chia-Liang.

The Asian Development Bank warns that the region must improve bond market liquidity and cooperation or bond prices will suffer.

Global fund managers intend to go overweight Asian fixed income, according to a survey by HSBC. But sentiment on Asian equity is mixed.

The firm has appointed Thomas Kwan from ICBC Credit Suisse to run its regional fixed income coverage out of Hong Kong.

Asian bond market investors face challenging times, but interest rates, credit selection, and local currencies create opportunities for alpha, according to Manulife Asset Management.

Software specialist Algomi unveils Asia-Pacific head as part of its global drive to bolster over-the-counter secondary market bond liquidity.

Taiwan's $115 billion state pension manager is considering how to raise its foreign smart-beta exposure and will review its emerging-market allocation this year after taking losses on EM debt.

The Taiwanese insurer has welcomed the US rate hike, but is concerned about global uncertainty. It is buying more emerging-market bonds, with the exception of Chinese debt.