Mainland developer ends junk bond drought

Investors hunting for higher-yield fixed income might have better luck with Asian high-yield debt. But what are the caveats?

As the trade dispute between China and the US drags on, yields on Asian bonds are looking like a much better bet than either Asian equities or bonds from outside the region.

David Tan, Asia-Pacific fixed income CIO at Allianz Global Investors, tells FinanceAsia why he is bullish on the Asia ex-Japan high-yield bond market, despite a terrible 2018.

Diverging monetary policies, weaker valuations and an uncertain regulatory environment will affect Asian high-yield into 2015 but these risks will likely be short-lived.

Investors are demanding higher compensation due to the potential rise in Asian corporate defaults, mounting geopolitical risks and a China slowdown.

Recently appointed Dechert partner, Daniel Margulies, spoke to FinanceAsia about setting up the firm’s first financial restructuring practice in Asia, and what sectors are likely to drive business in light of current macro events.