IE Conjecture podcast: Discussing Asian Bonds
Currency will continue to play a key role in determining which Asian bonds to add to portfolios, according to views expressed in InvestmentEurope’s latest Conjecture.
Panellists – including David Tan, head of Investments Singapore & CIO Pan-regional Asia Pacific Fixed Income Mandates, Allianz Global Investors, Donald Amstad, director, Aberdeen Asset Management Asia, Andrew Main, managing partner, Stratton Street Capital LLP, and Zsolt Papp, emerging markets fixed income product specialist at UBP Asset Management – said that the relative performance of currencies was important because of the increasing development of markets in local currency denominated bonds alongside dollar and euro denominated issues.
And with interest rate differentials betweeen poorly performing Western economies and faster growing Asian ones, this issue is set to remain crucial in developing valuation models used to determine whether to invest in particular sovereign or corporate debt.
Divergence of views tended to come on questions of just how to define ‘Asia’ – some say it starts “East of Suez”, others not – and to what degree bond indices should be included in overall research and analysis of the opportunities.