Risky bonds to weather US storm

摘要

Asian high-yield bonds are rebounding as regional investors seize a buying opportunity following weeks of outflows from US junk bond funds. Cash prices on low-rated Asian bonds slipped as much as 1.5 to 3 points over the past two weeks as worsening geopolitical tensions prompted US investors to pull money out of high-yield funds at a record pace. However, prices regained some ground last week and fixed-income specialists in Asia expect a sell-off in some of the hardest-hit credits to be contained as pension funds, asset managers and other so-called real-money investors in the region look to put cash to work. The broader Asian high-yield market rebounded 0.2% last week through Wednesday after losing 0.49% the week earlier, according to JP Morgan's JACI Non-Investment Grade Index.