With much of the global bond market posting negative yields, Asian fixed income still offers solid returns, said Omar Slim, vice president of fixed income at Pinebridge Investments.
Pinebridge, which has around $81 billion in client assets under management, has been looking at investment grade Asian debt, predominately bonds sold by companies, but also including some sovereign and quasi-sovereign offerings, Slim said in an interview last week.
"The fundamentals are stable. We've had valuations that are still a bit more attractive than in other markets, particularly for instance, some of the other developed markets," he said. "This hunt-for-yield environment is very powerful, and it's a hunt-for-yield in an environment where you're seeing less issuance in Asia, not more, so essentially there's more money chasing less supply."
Slim also said he likes Indonesian sovereign bonds, citing the government's efforts on reforms, including its recent tax amnesty program to encourage repatriating funds held overseas.
The yield differential in Asia offerings can be large. Indonesia's benchmark 10-year rupiah-denominated bond was yielding around 7.1 percent on Tuesday.