munichhypo-to-bolster-asian-buying-of-new-jumbo-pfandbriefe

MunichHypo to bolster Asian buying of new jumbo Pfandbriefe

With Asia's investors seeking safer assets - in an increasingly volatile global market - European covered bonds could be the beneficiary of the emerging markets' misfortune.
With catchphrases like ôchoppy marketsö, ôhard landingö, ôinflation concernsö and ôinterest rate uncertaintyö permeating media outlets and recycled often by the respective punditry, investors are becoming increasingly risk averse.

Investors have been dumping the riskier high-yield or emerging market debt instruments in favour of more secure assets that may pay less but provide a certain level of safety.

One asset class that is likely to take advantage of this trend, particularly in Asia, is the European covered bond market. That is why banks selling the covered bond story have been racking up vast frequent flier points visiting Asian investors.

ôWe are definitely in a risk-dumping mode,ö says one Singapore-based investor. ôBut in looking for some...
¬ Haymarket Media Limited. All rights reserved.

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