PETALING JAYA: Asian bonds would continue to provide investors with more attractive yields compared with developed market bonds, while fundamentals of Asian economies and corporates remain relatively sound.
Eastspring Investments, in a report on the viability of bonds as an attractive income option, stated that credit spreads of Asian US dollar-denominated bonds were still above their lows, reflecting room for potential spread compression, which could support bond prices and mitigate the impact from the potential modest increases in US risk-free rates.