Bet on Asia as Developed World Faces 'Enormous Headwinds': Pimco

The world's leading bond investment firm - Pimco - is making a heavy push into Asian sovereign debt.

"The entire region is an area where we are certainly focusing our attention," Chief Operating Officer of Pimco Douglas Hodge told CNBC on Tuesday, at the sidelines of the World Capital Markets Symposium in Kuala Lumpur.

With developed countries continuing to face "enormous headwinds", he believes that "the emerging world is in a much better position to generate growth".

He noted that Malaysian and Indonesian sovereign bonds look most attractive at this point in time. But he is "a little wary" of investing in Thailand due to the political instability hanging over the nation.

Despite the possibility of further interest rate hikes across the region, Hodge remains upbeat on maintaining exposure to Asian debt.

"Would you chose to lend to the most heavily indebted, slowest growing economies of the world, or the lesser indebted, faster growing economies of the world? I think that question answers itself."

While the $1.1 trillion bond fund manager is looking to Asia for its fixed-asset investments, Hodge said Pimco is also making a notable shift into equities largely due to the low interest rate environment in developed economies.

"It's not just about bonds anymore. It's about stocks, commodities, it's about real estate."