Bear market opportunities

Beware! Asian perpetual deals are back in town

Once considered bull market products, perpetuals are increasingly becoming a more regular component of a borrower’s arsenal. But are bond investors being lulled into a false sense of security about the asset class again?

When Hong Kong borrowers started executing fixed-for-life perpetuals towards the end of 2016, they initially met strong demand from fund managers searching for additional yield pick up in a declining interest rate environment.

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