Melanie Trimbell, of the Financial Standard, recently wrote Fund Managers are bullish on Bonds due to the recent announcement of QE3 and the ECB’s concerted bond buying program.
In an interview with Trimbell, Geoff Pidgeon head of asset management for HSBC in Australia said “ institutions are increasingly searching for alternative yields”.
The article does a good job of explaining the dynamics of the fixed income market in terms of local denominated fixed income and hard currency, or USD denominated, fixed income. Historically emerging markets offered higher yields but were not considered safe havens. However recent noticeable momentum in spreads and fundamental resilience in Asia’s corporate fixed income space has led to Asia fixed income having increased appeal.
The Excel Income Funds have done a great job for investors in participating in yield enhanced geographic areas ,such as Asian Fixed Income, as well as other regions that Sergei Strigo identifies as having momentum.
Written by Jack S.
Read more [webpage]: http://www.financialstandard.com.au/news/view/23140897