您现在的位置是:allure county zip up > Focus
【what is an staa truck】These bonds are still offering investors positive yields
allure county zip up2024-09-29 12:21:36【Focus】2人已围观
简介Some investors are flocking to Asian fixed income assets, lured by the prospect of juicy returns eve what is an staa truck
Some investors are flocking to Asian fixed income assets,what is an staa truck lured by the prospect of juicy returns even as large chunks of the global bond market are seeing yields lurch deeper into negative territory.
Income-seeking bond investors have had a tough few years.
A record plunge in developed market bond yields, which move inversely to prices, has caught large sections of the market by surprise. Japanese bonds maturing in 40 years yield less than 0.10 percent, while investors are paying for the privilege of lending short-term money to Spain and Italy, countries where fiscal profligacy had sparked a crisis only a few years ago.
The U.K.'s vote last week to exit the European Union (EU) made it even tougher, with a rush of funds seeking safer havens pouring into government bonds, pushing some to record low yields.
Following the turmoil of the Brexit vote, the amount of bonds with negative yields has jumped to $11.7 trillion. That's a 12.5 percent increase since the end of May, according to a Fitch Ratings report Wednesday.
The portion of the bond market in negative-yielding territory was likely only to deepen, particularly in Europe and Japan, and that's set to drive funds into Asia's bond markets, analysts said.
"The quantitative easing coming out of Japan and coming out of Europe continues to drive flows into other high-yielding assets," Stephen Chang, head of Asia fixed income at JPMorgan Asset Management, told CNBC's "Street Signs" on Wednesday.
"We are looking at emerging market countries and Asian countries for their yield quite a bit more. That would be the next destination for people to chase yield," he said.
Chang said that while he liked dollar-denominated bonds by Asian borrowers, he preferred Asia local-currency issues, noting some of the region's central banks still had capacity to cut rates and currencies appeared cheap after the dollar rallied last year. That suggested the local-currency bonds could rise.
Jack Siu, investment strategist for Asia Pacific at Credit Suisse, was taking a similar approach, calling Asian fixed income "the only bright spot in markets". Siu also noted that some local-currency bonds, such as those issued by governments in Indonesia and China, were beginning to show value.
Indonesia's benchmark 10-year government bond was yielding around 7.4 percent, while China's was yielding around 2.8 percent on Thursday; that's a stark contrast to the German 10-year bund's yield
(Germany: DE10Y-DE)
around negative 0.107 percent and the Japan 10-year government bond's yield
(Japan: JP10Y-JP)
at around negative 0.214 percent.
Story continues
The positive view on Asia fixed income stood in contrast to Credit Suisse advising clients to take a low-risk strategy, underweighting equities and moving toward cash.
"The reason why we got this kind of rally in Asia bonds is because now we have a negative yielding environment," Siu said.
He said demand for Asia bonds had risen amid the European Central Bank's plan to buy around 21 billion euros of corporate bonds there every month.
"A lot of managers have to go outside of their native habitats and go to Asia to pick up the yield away from the European bonds, which are yielding less than the fees they're charging their clients," he said.
The JPMorgan U.S. dollar Asia Credit Index had a yield to maturity of around 4.09 percent Thursday.
At the same time, Siu noted the supply of Asia bonds had fallen by around 14 percent so far this year, as market volatility dissuaded issuers and many Chinese issuers turned to the onshore markets.
Siu advised sticking to investment-grade dollar-denominated Asia bonds to keep cash safe, warning that junk-rated issuers should be avoided.
"The credit fundamentals are actually deteriorating. The flood of liquidity produced by the ECB is helping to cover the poor fundamentals in the company issued bonds," he said, adding he expected Asia high-yield bond defaults would rise.
—
Jeff Cox contributed to this article.
Follow CNBC International on
and
.
—By CNBC.Com's Leslie Shaffer; Follow her on Twitter
@LeslieShaffer1
More From CNBC
Top News and Analysis
Latest News Video
Personal Finance
View comments
很赞哦!(6)
相关文章
- Kemper (KMPR) Q3 Earnings and Revenues Beat Estimates
- BRIEF-Kweichow Moutai Sees 2018 Net Profit Up About 25 Pct Y/Y
- Watch Sacha Baron Cohen salute 'comedy genius' Rudy Giuliani in Golden Globes speech
- Trump says China could have hacked Democratic emails
- A design trends forecaster calls the coronavirus “an amazing grace for the planet”
- DAX Index Daily Price Forecast – Dax To Trade Range Bound on Subdued Risk Appetite
- Malaysia's Dec palm oil exports up 1.8 pct -Amspec Malaysia
- 7 of the best laptop brands of 2019
- It's not over until there is no virus anywhere in the world - WHO
- AIG's UK Unit Closes Buyout of Ellipse, Boosts Portfolio
热门文章
- Global Care Capital Portfolio Company ViraxClear Secures Supply Contracts to Meet Demand for COVID-19 Antibody Test Kits in Europe and Singapore
- Wyoming Estate Tax
- BRIEF-My Heart Bodibra Group Says Currently In Negotiation For Possible Acquisition Of Shareholding Interest In A Co
- Coral Gables Office Building Sells for $2.6 Million
站长推荐
Top Ranked Growth Stocks to Buy for June 4th
Banner Sees Hammer Chart Pattern: Time to Buy?
Lawsuit Targets Nvidia for ‘False Statements’ on Crypto Mining Revenue
USDA chief says unknown whether China will remove tariffs on U.S. soy imports
Estimating The Intrinsic Value Of The Hain Celestial Group, Inc. (NASDAQ:HAIN)
Netflix under pressure, Crocs gets an upgrade, Google receives FCC approval
Galveston Attorney Charged With Representing Clients He'd Never Met
Sony Pictures Television Channels in Central and Eastern Europe Sold to Antenna Group (EXCLUSIVE)
友情链接
- China cuts crude oil import quotas with first batch of 2019 allowances
- Hilaria Baldwin Is 'Very Worried' About Husband Alec After Rust Shooting: Source
- Company wants Alaska to ban hunting near its mine
- MGM, AEG to break ground on Las Vegas Strip arena
- BRIEF-FGV Holdings Appoints Mohd Hairul Bin Abdul Hamid As CFO
- Japanese yen soars as 'flash crash' sweeps currency market
- India ruling party confident of doing well in general election-Modi
- U.S. wins WTO ruling on Chinese grains; decision may also affect India
- Calculating The Fair Value Of Wayland Group (CNSX:WAYL)
- DSP Group, Inc. to Host Earnings Call