Asia IG bonds: the longer, the better

In a rising interest rate environment the appeal of investing in longer duration bonds declines but this isn't the case for 2015.

The attractiveness of raising and investing in longer tenor funding will persist in 2015 despite the impending US interest rate rise.

Although the US Federal Reserve is expected to increase rates mid-year, buoyed by the improvement in the country's economy, the rise is likely to be moderate.

This in turn provides good support for Asia’s credit markets, making it conducive for both investment grade issuers to tap and for investors to invest in the longer end of the credit curve, syndicate bankers said.

“Asian borrowers will look at extending duration, a theme that will continue through the coming year,” said Devesh Ashra, head of...

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