The appeal of the Asian market

ON BONDS

Local-currency bonds in Asia are appealing as the region offers better fundamentals than the developed world, while paying higher yields on average.

Also, with global and regional growth slowing, policy makers are taking steps to support the economy, such as cutting policy rates, making Asia an attractive environment for bond investors. Bond markets have grown substantially in Asia since the turn of the century, making them collectively one of the largest bond markets in the world. The expansion has helped absorb increased demand from domestic and international investors. It has also given investors better investment options and liquidity than ever before. Government issues dominate Asian bonds – this can be both a good and bad th...