Easy money over for Asian junk bonds

Bankers and investors warn high-yield bonds from Asian issuers face headwinds due to compressed spreads.

Easy money over for Asian junk bonds

After a banner year of issuance, capped by a record $10.6 billion issued in January 2013, investors in Asian high-yield debt face a tougher environment.

“Income will dominate and capital appreciation will be limited,” says Bryan Collins, portfolio manager at Fidelity Worldwide Investments.

Tim Jagger, who manages Asian high-yield bonds at Aviva Investors, says that in contrast to the equity-like returns that investors enjoyed in 2012, this year they will only make...

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