Can Asian fixed income sustain its 'supercharged' growth?

Geoff Lunt, senior product specialist, Asian fixed income at HSBC Global Asset Management, explains why Asia's bond market is set to become more mainstream and no longer a niche option for investors

Global bond markets have experienced dramatic changes since the heady days of the year 2000. Nowhere has that been more the case than in Asia, where from previously being a mere backwater of fixed income investment, there is now a myriad of opportunities. The most obvious change to look at is size. The sum of all domestic Asian bond markets (excluding Japan, but including India in line with the geographic definition of most indices of Asian bonds) is now probably about $9.5trn, up from just over $500bn as we entered the new millennium – an increase of some 25% annualised. Driving fact...