The lackluster demand for Asian dollar bonds (ADB) is likely to recover as investors who shunned weaker quality notes during the turbulent final quarter of 2018 now see them as too cheap to ignore. This indicates investors will take money out of SCI and invest into ADB junk bonds
Lord MEDZ
“The story of 2018 was the dramatic widening in Asia high-yield spreads,” said Paul Lukaszewski, head of Asian corporate debt & emerging market credit research at Aberdeen Standard. “The current market is fertile with opportunities to generate attractive returns” and “Chinese high yield remains an outlier in that it continues to offer compelling valuations far above historic averages,” he said.