Asian convertibles uncovered

Asian convertibles may not be a traditional option for UK investors but they could be the best way to play Asia in the likely volatile markets of 2010, writes Kurt Fisch

Investors around the world are searching for a combination of yield, security and growth. With deteriorating public finances, a fragile currency and government bonds looking overpriced, it may make sense for UK investors to look overseas for a solution. Asian convertibles are not a traditional option but they offer a number of advantages and we believe they currently represent very good value. Secure yield The market is currently yielding 3.5% with an average duration of less than three years, meaning yields are generous compared to other asset classes. Asian equities, for example, yie...