As the fundamentals of Asian emerging markets improve, credit-focused bond investors find better opportunities in other regions, according to Ben Robins, portfolio specialist at T Rowe Price.
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As the fundamentals of Asian emerging markets improve, credit-focused bond investors find better opportunities in other regions, according to Ben Robins, portfolio specialist at T Rowe Price.
Stocks of companies that have stronger balance sheets will benefit more from the current market environment than value stocks, argues Justin Wells, London-based global equities strategist at Old Mutual Global Investors.
While rising interest rates boost returns of loan funds, increased demand for loans, together with limited supply, reduce the gains, according to Jeff Bakalar, managing director and head of senior loans at Voya IM.
China’s small caps are telling a completely different story than larger companies, but they are under-analysed and face-to-face due diligence is required, said Tiffany Hsiao, lead manager of Matthews Asia China Small Companies Fund.
Defaults normally take a couple of years after the first warning signs and therefore can usually be predicted, said Vivek Bommi, European high yield and global high yield manager for Neuberger Berman. He explains some of the red flags and his approach to risk.
Industry consolidation in China’s property development market has made the separation between winners and losers more clear and improved valuations in the sector, said Bryan Collins, lead manager of Fidelity Asian High Yield Fund.
This week’s volatility in Russia’s stock market presents buying opportunities, however the market’s structural flaws mean that investors need cast-iron stomachs to weather more such events in the future.
Despite the inclusion of onshore bonds on some global indices, portfolio managers have taken minimal exposure to the onshore bond market, citing the payment settlement issue as a key obstacle.
Actively-managed China equity funds are the top performers, while ETFs lag in FSA’s ranking of best and worst China equity products at the end of Q1.
Lower leverage makes high yield bonds less risky today than during the 2008 global financial crisis, but returns are also likely to drop this year, argues Kevin Mathews, head of global high yield at Aviva Investors.
Part of the Mark Allen Group.