Moody's: Asian bond investors forego tighter covenants for yield

KUALA LUMPUR: Investors of Asian high-yield bonds have sacrificed covenant protection in the past decade in the chase for yield, according to a report by Moody’s Investors Service.

The credit rating agency said the region’s high-yield bonds have weaker covenants, with Chinese property developers' bonds rising in proportion and having looser covenant structures over the years, but they remain stronger than bond covenants in Europe, the Middle East and Africa (EMEA) and North America.