Risk premiums on corporate bonds have been rising as investors spooked by Greece's debt crisis and a U.S. slowdown have demanded higher yields. But some analysts say, for investors hoping for higher yields without taking on too much risk, investment grade corporate bonds from China provide a good alternative.
There are dark clouds on the horizon for India's economy, say analysts who forecast GDP growth to fall below 8 percent thanks to high inflation, which has prompted the Reserve Bank of India to raise interest rates by over 200 basis points over the past one year.
Asian corporate bonds are finding favor with investors as they offer high yields-5-10%- but come with less risk as regional companies strengthen their balance sheets in a high growth environment.
Japan’s stock market has been on a tear lately. The Nikkei has rebounded 18% from the lows in August last year. But fund manager, Curtis Freeze, has managed to outperform the market by a huge margin and he’s done so by making bets on small, under-covered stocks.