As Asian inter-regional trade increases, lower currency volatility could cause Asian assets to reprice, according to Allianz GI’s CIO of Asia Pacific fixed income Jenny Zeng.
Yield-hungry investors continue to find stable income from fixed maturity products (FMPs) in a low interest rate environment, according to Cerulli.
The firm has gained regulatory approval to sell three high income products to Hong Kong retail investors.
The asset class has some insulation from global shocks due to the structure of the region’s two largest economies, said Eastspring Investments CIO of Asian fixed income Boon Peng Ooi.
Investor sentiment toward Indonesia appears to be rebounding after the massive capital flight that occurred in 2013, according to David Tan, CIO of Asia-Pacific fixed income at Allianz Global Investors.
The Malaysian firm has launched a fixed income feeder fund, which invests in an Asian fixed income product managed by its Singapore arm.