Q&A: Why AllianzGI sees value in HY credit

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

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.

The high-yield sovereign issuers prints an upsized $800 million bond, after building an impressive $5.5 billion of orders.

With corporate defaults likely to rise further, developing a reliable credit rating system could be key to drawing more participation from global investors.

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.

Citic Guoan Group, a subsidiary of state-owned conglomerate Citic, has defaulted on its Rmb3 billion bond. It is the biggest corporate bond default in China so far this year.