KUALA LUMPUR: If the US Federal Reserve follows through with interest rate cuts, the falling costs of hedging mean international investors could be more attracted to US dollar corporate bonds, according to Schroders.
In a research note issued on Monday, Schoder's strategist, research and analytics,Kristjan Mee pointed out that over the last year or so, the high currency-hedging cost made US dollar corporate bonds less attractive for international investors despite the relatively high level of US yields.
Already a subscriber? Log in.
Limited time offer:
Just RM5 per month.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!