Junk Bond Premiums in Asia Climb to Highest Since 2016

(Bloomberg) -- The premium that junk dollar bonds pay over investment-grade corporate notes in Asia keeps pushing higher.

Investors can get 580 basis points more on the speculative-grade bonds, the highest in two and a half years, according to ICE BofAML indexes.

Asian high-yield notes adequately compensate for expected losses, and as long as investors aren’t concerned about particular issuers, they should hold onto their current positions, said Charles Macgregor, head of emerging markets at Lucror Analytics Pte. in Singapore.

By Finbarr Flynn

2018-11-22 02:34:28.792 GMT