Asian Junk Bonds Give Investors Best Returns in Two Years

(Bloomberg) -- Asian corporate dollar-denominated junk bonds, most of which are from China issuers, returned the most in two years in July at 1.77 percent, after measures by Chinese authorities eased concerns about funding.

“All of a sudden investors realized that the sky was not falling in and that Asian HY yields were extremely attractive, ” said Charles Macgregor, head of emerging markets at Lucror Analytics Pte Ltd in Singapore.

Citigroup Inc. expects global investors to reallocate more funds to Asian bonds, the bank said in a note this week, adding that it likes Chinese property high-yield names.

 

2018-08-01 02:30:50.264 GMT

By Finbarr Flynn