Asian bond investors still worried about US policy, protectionism
Regional security and Brexit concerns overshadowed by uncertainty in Washington
A recent survey of 207 fund managers found that concerns of US policy are at the top of the list for risks to local Asian bond markets, reports Monica Uttam for the Asset.
“Any perceived US policy shocks would be negative for flows to Asia…Asian credit spreads, except Chinese credits, would likely tighten, tracking global equities,” said one trader at a large asset manager in Singapore.
Protectionism and weakening local currency remain other top risks, followed by political and security risks in the region and a hard Brexit.