Fidelity urges investors to keep bond covenants in place

Fidelity is pushing for greater bondholder activism in Asia to help drive a better deal for high-yield investors.

Fidelity urges investors to keep bond covenants in place
Time to take to the streets? Asian bond investors lack the cohesion to make their voices heard, complains Fidelity (AFP)

Earlier this month, US fund manager Fidelity took the somewhat unusual step of organising a lunch briefing at its office in Hong Kong to educate the media on bond covenants. The fund manager was irked by covenant changes made by Asian high-yield borrowers recently and wanted to drum up support for its cause.

“We need the help of you in the media, the help of rating agencies,” said Sabita Prakash, head of Asian fixed income...

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