Asian bond market retains attractions

The case for investing in Asian bonds remains strong against the backdrop of a global economic downturn

The Asian domestic bond market has been significantly transformed over the past decade both in terms of its overall size and the breadth of bonds it now offers. Thanks to continued improvements in economic fundamentals, for example, the vast majority of the region's sovereign debt has been upgraded to investment grade. Emerging market and high-yield bonds now form a far smaller component of the asset class, although opportunities remain to pick up higher yields in countries such as Indonesia and the Philippines, which are still rated below investment grade. Looking at the overall size o...